Business Analysis: Facebook Purchase Whatsapp

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A brief description of the issue Facebook purchase Whatsapp Facebook is the most popular online social network where users share information and are in contact with friends. Besides that, there is a large amount of personal and sensitive information publicly available that is accessible to external users (Reza F. et al, 2013). Facebook has completed its purchase mobile messaging service which is WhatsApp for up to $22 billion in cash where this is an increase on the $19 billion initially announced as Facebook's share price has risen since the deal was first announced. Facebook will pay $4.59 billion in cash and 177,760,669 shares in the company. The deal instantly makes WhatsApp cofounders, Jan Koum and Brian Acton billionaires. Forbes estimates…show more content…
But now, we will be more shocked because the final price is about $22 billion. It is stated in the report of U.S Securities and Exchange Commission. The Facebook founder Mark Zuckerberg describe Whatsapp’s service as “incredibly valueable”. As we all know, WhatsApp, a popular social networking application which it isan instant messaging subscription service available for smartphones, has more than 450 million monthly users as people use it to avoid text messaging charges. WhatsApp was develop by Brian Acton and Jan Koum in 2009. By using Whatsapp with the present of internet connection, people can send messages to avoid text messaging fees. It is stated that the company recorded that there are one million new users registering in one day. It charges users about $1 per year as a subscription fee although it offers a free model as…show more content…
WhatsApp is a text messaging application for Smartphone that uses the internet to send the message differently from the old SMS plan. The most main feature of WhatsApp is its does not have in-app advertisements. Basically those advertisements need users’ information to rely on to deploy ads. WhatsApp have established a policy of not collecting or storing users’ data which made users’ privacy kept. On last updated in July 2012, according to WhatsApp’s privacy policy, WhatsApp does not collect names, emails, addresses, or other contact information from its users’ mobile other than mobile phone number. These privacy policy interest more users to keep using the

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