2. What analyses support your position?

What are the underlying assumptions

you are making?

The acquisition of WhatsApp by Facebook was primarily for the purpose of gaining access to the new
booming area of online communications. At the time of WhatsApp’s acquisition, WhatsApp had 600
million MAUs. Therefore,

 Adding WhatsApp to Facebook’s portfolio allowed Facebook to diversify and move into a
popular new segment of social networking. Also, by keeping WhatsApp independent, its
founders were able to focus on product development and user growth, which eventually
would lead to major payouts for Facebook. This section expands your options in the areas of
online payments, data collection, and other connected sectors.

 historically WhatsApp demanded minimal information from its users, the linkage
would increase the amount of data Facebook would have, allowing it to target even
more specific ads to users.

 It was likely that Facebook would resemble WhatsApp over time, or at least offer many of
the same features, so purchasing WhatsApp eliminated a worthy competitor and gave
Facebook a head start in the saturated messaging market so a great strategic move to
remain ahead of the competition.

ASSUMPTIONS - Facebook seemed to be transitioning from a focused social networking company to

a holding company with many different businesses in its portfolio as it planned to evolve into a more
developer- friendly platform, which would help it monetize apps across various devices

WhatsApp is critical to Facebook's growth in various parts of the world. By putting monetization
initiatives on hold, Facebook is betting on the future of international, cross-platform messaging.
Facebook's tentacles are getting closer to touching billions of users with the purchase of WhatsApp,
and other various platforms . These acquisitions gave Facebook access to even more data, which it
planned to utilize in order to improve the prices and types of products offered to users on its various
platforms and with such a big market, Facebook is guaranteed to profit.