The recent mouth-watering acquisition of Online messaging service Whatsapp for a mighty deal of US$19 billion is going to fetch enormous number of mobile subscribers for the social media giant, Facebook.
Whatsapp has got a phenomenal growth rate. It nearly gets 1 million subscribers on a daily basis, along with this count reaching twice in the past half an year.
Last year, it had a user-base of 200 million but at present, it has escalated up to a massive 450 million count. The firm is anticipated to reach 1 billion clients in five years duration.
Social media behemoth, Facebook, has currently more than 1.23 billion subscribers globally. This phenomenal idea was crafted by Mark Zuckerberg some 10 year ago.
Facebook saw that over two billion Web surfers are anticipated to use Internet applications from their smartphones over the coming five years; it had to turn the tables in its favor.
Facebook threw some 10.9 % of its equity or US$19 billion to grab the fastest growing messaging firm.
Apart from other benefits to the Facebook, one major advantage will be the collection of contact numbers of Whatsapp subscribers. Whatsapp requires contact number to get started and Facebook will ultimately get the user’s mobile number to add on its user account.
Research firm Ovum’s analyst, Nehar Dharia said that Facebook will get insight of its user traffic schemes from the Whatsapp user contact information, which would ultimately influence its ad strategy.
Moreover, recent study also highlights the massive growth of smartphone subscribers in the emerging nations of Latin America, Asia and Africa.
WhatsApp is the favorite online messaging in many countries of Latin America and Asia.
This deal will also help Facebook to hold some ground on the Chinese soil as it is forbidden in China. So by buying Whatsapp, Facebook could explore the horizons of biggest global smartphone market.
Research firm Forrester has predicted that smartphone user- base is going to surpass 500 million mark in China in 2014.
Earlier in 2012, Facebook did a same tactic to appeal cell phone customers by showing its desire to purchase image-sharing firm Instagram for US$1 billion.
Facebook lays great emphasis on online applications as it brings attractive attributes that lures subscribers to use the website for hours, thus luring ads for the firm.
Analysts think that Facebook might be following the footsteps of Rakuteen, Japanese e-commerce heavyweight, which purchased Viber for a $900 million dollars deal last week.
Rakuten amassed some 300 million subscribers from Viber, which adds to its actual 200 million user strength.