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Facebook Acquired Whatsapp

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Motives why Facebook acquired WhatsApp Facebook is an online social networking service founded on 4 February 2004 by Mark Zuckerberg with his college roommates and others Harvard University students. Facebook was developing not just to be a company, but also to fulfil a vision of connecting the world. They want to giving people the power to share whatever they want and be connected to whomever they want, no matter where they are. While, WhatsApp is an instant messaging app for smartphones founded in 2009 by Brian Acton and Jan Koum. The proprietary, cross-platform app uses the Internet to send text messages, images, video, user location and audio media messages. Besides that, user can use this WhatsApp without limit or overage charges. The app is available on many platforms and is free to download and has no ads. Facebook mission is to make the world more open and connected. They do this by building services that help people share any type of content with any group of people they want. So, Facebook has paid $19 billion acquisition with WhatsApp services to achieve their mission to become grower and can gain more profit in future. But, there are several motives to identify why Facebook acquired WhatsApp. The first motives why Facebook acquired WhatsApp are an economic motive. Most company doing acquisition and merger between their rivals in order to increases the market share and market power. In these motive, Facebook acquired WhatsApp because WhatsApp will facilitate their plans by bringing “connectivity and utility to the world” and it can access to an established audience within developing markets such as India, South America, Eastern Europe and Indonesia. The combination between this two firm’s market powers is very important to increase in market share because Facebook is already in the process of creating its own mobile apps, and since their own Messenger

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