East Bay Trading has reported that Facebook has agreed to buy mobile messaging company, WhatsApp for $19bn in the largest Internet company acquisition in a decade.
Guangdong, China., February 27, 2014 - (PressReleasePoint) - Facebook Inc., the world’s largest social networking company has announced that it has agreed to buy mobile-messaging start-up, WhatsApp for $19bn in what many are calling the largest Internet company acquisition in a decade.
Analysts at East Bay Trading, however, believe that Facebook had little choice but to strike a deal with the Mountain View, California based company, which has 465 million users around the world given its desire to remain current and relevant to young users in the rapidly changing world of social media.
“On the one hand, Facebook wants to appear solid and dependable in the eyes of its shareholders but, on the other, the company still wants to be regarded as young, hip and at the cutting edge with younger users as it was during its early years. Unfortunately that’s proving to be a difficult balance to strike,” said an East Bay Trading researcher.
Consensus at the firm suggests that WhatsApp’s appeal lies in its strategic value which would boost Facebook’s desire to be used as a real-time resource for communication rather than just one that users log in to check messages or updates.
The company’s own Messenger service has not been a runaway success and still trails other messaging services like China-based Tencent’s WeChat and Japanese-based LINE both of which offer calls, something that WhatsApp says it will introduce shortly
“Facebook is desperate to remain relevant and while we applaud the acquisition, there is one inescapable fact that can’t be ignored and that is that young people don’t want to be on the same social network that their parents are on. Consequently, we expect Facebook to continue chasing user numbers for some time yet,” remarked the East Bay Trading researcher.
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