FaceBook’s $19 Billion purchase of WhatsApp

WhatsApp is a small company with at most 50 employees but since they came on the scene they have grew quickly to having 450 Million users around the world. The platform theme as stated on the walls in their head office is No Ads, No Games, No Gimmicks and this is how they have kept their app pure from the constant reminders to users that their communication are being tracked. This quick growth and current estimate of bringing in an estimate of 1 Million users a month is what has drawn FaceBook, the largest Social Networking site, to their doors holding an offer that was just too good to turn down.

The challenge now for FaceBook is to justify to its shareholders as to why this small company is worth the huge $19 Billion (£11 Billion) ransom that has been put forward and how it can be monetized over the years. With new masters at the helm, the 450 Million users could yield more insights into the trends of social community and allow FaceBook to capitalize on the next wave of social media trends. However, this is one of the main concerns that have been voiced by privacy groups over the world. The fact that FaceBook will mine the personal data of new users for advertising purposes is contrary to the goals  WhatsApp was founded on and touted since its inception but the bottom line of the capitalist market is and will always be “making profits”.

This marks a brand new day in the social media world and establishes the new battlefield for companies. The price for user data is very hard  to estimate and similar to FaceBook company valuation when all was said and done the amount of money that the market was willing to bear was unimaginable but over time the value of the data is still priceless with the potential to  can raise up monopolies and create marketing giants.