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  • Whatsapp

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    Vamsi Katta
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    Facebook was created to enhance communication and connect people globally as text messaging services were expensive, especially internationally. WhatsApp provided a comparable free service through smartphones, gaining popularity through its easy signup and interface without ads. As WhatsApp's user base grew as a Facebook competitor by making communication affordable, Facebook acquired WhatsApp for $22 billion. By 2023, WhatsApp is projected to have 2.24 billion users globally and generate $2.24 billion annually if it charges $1 in service fees, providing perpetual revenue for Facebook through user data collection.

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    Facebook was created to enhance communication and connect people globally as text messaging services were expensive, especially internationally. WhatsApp provided a comparable free service through smartphones, gaining popularity through its easy signup and interface without ads. As WhatsApp's user base grew as a Facebook competitor by making communication affordable, Facebook acquired WhatsApp for $22 billion. By 2023, WhatsApp is projected to have 2.24 billion users globally and generate $2.24 billion annually if it charges $1 in service fees, providing perpetual revenue for Facebook through user data collection.

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    5 views1 page

    Whatsapp

    Uploaded by

    Vamsi Katta
    Facebook was created to enhance communication and connect people globally as text messaging services were expensive, especially internationally. WhatsApp provided a comparable free service through smartphones, gaining popularity through its easy signup and interface without ads. As WhatsApp's user base grew as a Facebook competitor by making communication affordable, Facebook acquired WhatsApp for $22 billion. By 2023, WhatsApp is projected to have 2.24 billion users globally and generate $2.24 billion annually if it charges $1 in service fees, providing perpetual revenue for Facebook through user data collection.

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    © All Rights Reserved
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    of 1

    Facebook was essentially created with the goal of enhancing communication and bringing people

    together around the globe. Although there were options, such as text messaging (SMS) services,
    they were expensive, and there were no reasonably priced options for overseas services. People
    were helped by Facebook on this front. Their smartphone app has made it much simpler to connect
    people.

    Apps like WhatsApp have developed comparable services aimed at the same population, and they
    have established themselves as a dependable and cost-effective replacement to SMS and MMS.
    WhatsApp started garnering a lot of popularity among users of all ages due to its simple sign-in
    procedures and user-friendly layout.

    Unlike Facebook, WhatsApp has no distractions of any kind like advertisements or promotions.
    Hence, it started to be a competitor to Facebook as the underlying motive of both the firms is to
    make communication affordable and easy. With the increase in user base of WhatsApp, Facebook
    saw it as a threat to its business. Hence acquiring WhatsApp at $22 Billion is a fair deal.

    In the year 2023, WhatsApp will have 2.24 billion users globally. People have begun utilising
    WhatsApp as a replacement for SMS and telephone services. It is now an integral component of
    daily life. There have been many alternatives to WhatsApp that have come up in the recent past. But
    none of them were able to replace WhatsApp. If WhatsApp, being such an essential commodity,
    were to monetize its services in the near future, $2.24 billion would be generated annually from only
    $1 of service fees (if every user subscribes to it). This will turn into a perpetual revenue source for
    Facebook.

    WhatsApp had 1 million users in 2009 and in 2023 it has around 2.24 billion. The user count has
    grown drastically, and this gives Facebook access to data of the users if WhatsApp is ready to gather
    personal information from the users (currently WhatsApp is not collecting any user data except the
    phone numbers). This data, if collected, can be used by Facebook to increase their revenue by
    following the same business model as they have used for Instagram after its acquisition.

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