In this article it talks about the acquisition of WhatsApp by Facebook. The WhatsApp program which is considered to be an alternative for text messaging was acquired by Facebook in a cash and stock deal worth 19 billion dollars. Facebook became partners with a great brand being that the popularity of its users has gained to 450 million which surpasses the amount of consumers using Twitter by 210 million. The deal established requires that Facebook issue out 3 billion dollars worth of stocks to the 55 employees of WhatsApp during a four year timeframe.
The deal that was struck doesn’t only benefit WhatsApp but also the investors which turns out to be Sequoia Capital that believed in the text messaging program. With the investment of 60 million
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Financial benefits for Facebook partnering with WhatsApp seems vague at the moment being that the company allows new users free usage of the service on their sign-up year, then pay one dollar annually to continue service. Having the service at a low cost to consumers the company operates without promoting any third party advertisements. Before Facebook and WhatsApp joined forces they both lost opportunities to partner with other brands whereas Facebook lost a deal with Snapchat for 3 billion dollars and WhatsApp with Google’s …show more content…
Being that Zuckerberg expressed interest for the company since 2012 through email contact with Koum. The approach to become partners was done initiated through Zuckerberg on February 9th and Koum returned with a response on February 14th by going to Zuckerberg’s home. Before Koum struck this deal with Facebook to become a member of the board of directors there he was a Yahoo engineer. These two companies were a perfect fit being that they share the same core consumer group which happens to be young adults with WhatsApp connecting more the market than Facebook in popularity. If estimated the 19 billion dollars that Facebook offered WhatsApp for the partnership it can considered they paid forty dollars per potential consumer WhatsApp
The first strength is over all positive margin growth, quite large to be exact. 531% sales increase from 2010 to 2014. This of course leads to a relatively healthy ROI or return on investment and net revenues. This margin growth is a consequence of the next strength of Facebook. An element of their product that not many other competitors have. That is the unlimited marketing and advertising space that is available via news feeds and timelines. Many companies such as google and Microsoft are limited to advertising using their search engines whether it is on the top or bottom it is limited space. Thus, giving Facebook a large advantage. Facebook’s third strength is its large user amount in varying countries. This provides a large network or pool of information that marketers or advertisers would pay to get their hands on. People put a lot of information about their likes, dislikes, and personalities on Facebook which could help in market research. Last but certainly not least despite Zuckerberg’s feeling, Facebook makes crucial acquisitions when it comes to opportunities to acquire market share. This was apparent in Facebooks acquisition of Instagram as well as the possibility to acquire
WhatsApp: It’s for someone who feels Facebook and twitter is very public and don’t want to get affected by it. It is a smartphone based social networking sites and based on phone numbers, you can sign up by using your phone number, it allows to text and share your information exclusively .I think it’s quite easy, safe, reliable, handy and a great app. No privacy is required at all, so simply one of the best app created till date.
Wolfe, Lahle. "Surprising Statistics About Facebook 's Rapid Growth." About.com Money. About.com, n.d. Web. 03 Nov.
Facebook is a company that uses personal information to tailor advertising, they collect information using a variety of methods, but it is user’s proclivity in posting private information and the lack of privacy laws that create an ethical dilemma. The main moral issues are accountability for the collection of private information and who gets to use it, who has
Facebook’s acquisition for Instagram presents some benefits for Facebook, according to a few observers on the deal. Facebook understood that Instagram was fast growing in the social media world, and knew that the recently made smartphone app would give Facebook a run for its money, literally. Instagram had the mobile-first persona that Facebook hadn’t at the time, which is why Zuckerberg knew it would be wise to make this acquisition from the start. Gigaom contributor, Om Malik stated, “Facebook and Instagram are two distinct companies with two distinct personalities. Instagram has what Facebook craves – passionate community. People like Facebook. People use Facebook. People love Instagram.” Malik also continues to express his opinion by saying, “It is my single most-used app. I spend an hour a day on Instagram. I have made friends based on photos they share. I know how they feel, and how they see the world. Facebook lacks soul. Instagram is all soul and
The bottom line is that the active users and potential of Facebook is scary to pass up and not take seriously. There is so many reasons that putting the time in to be active and operating it effectively can make a world of difference in adding to your company’s overall growth. Facebook is one of the many gadgets in your toolbox to help you do the job.
...hat social norm is just something that has evolved over time.” Mark describes he’s infulence on privacy. The effect Facebook has had on Americans, on the world, is beyond words. The terms ‘friend me’ or ‘facebook me’ is a common saying. Mark Zuckerberg’s accomplishments have not only affected members of his websites but have affected all of us, each in a different way. “And it seems very likely that Facebook will continue to enhance the lives of an enormous number of people for years to come. Mark Zuckerberg’s little dorm-room production has grown into one of the most influential companies on the internet.”(Mezrich, 255) Despite opinions of Facebook or of Mark , he is truly an amazing entrepeneur, programmer, developer, and man. What it takes to become the world’s youngest billionaire of all time is unknown, but whatever it is, Mark Zuckerberg has certainly got it.
The positioning and interests of other parties during the negotiations are as follows, in which Facebook Inc. and Salesforce.com Inc. are involved during the early stages, but Facebook Inc. did not support or assist LinkedIn during the negotiation, where Salesforce.com Inc. had stood by LinkedIn and it ultimately increased each of LinkedIn’s share value to approximately $200 from $182(Salesforce PMULBBD, 2016). The main motive of Microsoft acquiring LinkedIn was that the companies like Google and Facebook have their own social network websites, where as Microsoft does not have one, where Microsoft had thought about having it own social networking site for its future works and negotiated it for a better deal (Salesforce PMULBBD, 2016).
If a user often views things related to cooking for example, then Facebook will start making ads pop up for cookies, grocery stores, and other food related items. Even the advertising industry is breaching on user’s privacy. When someone goes shopping at the store, there is not someone stalking them writing down everything they look at on a pad of paper, and then suggesting related stores to him or her. That would be very suspicious. Now, with Facebook, the company sneakily violates user’s privacy while making them think it is smart technology and is beneficial. Psychologically, advertisers are becoming smarter into tricking their customers. Ad suggestions are more or less an invasion of privacy by the company
staff Jan Koum and Brian Acton. WhatsApp messenger is a messaging application which permits users to exchange a great number of messages without the necessity to pay for SMS Service, but a user needs to have an internet service on his cellular phone (Wagner, 2014). Besides, it is compatible with the majority of smart phones. Therefore, users can establish groups; send each other unrestricted images, videos and audio messages for free. As stated by the daily telegraph, the emergent WhatsApp transfers about 20 billion messages in a daily basis that is twice the size of Facebook’s every day messaging traffic transferred by Facebook Messenger (Sibi, 2014). In order to use WhatsApp, it is configured on the user’s phone number without the need to have an email ID similar to Facebook. However, when installation is complete, WhatsApp contacts with the main server and compares the contacts in the user’s phone. It automatically adds the people who are already using WhatsApp to the ‘Contact List’ of the user’s phone. The registration process sounds very fast and simple here comparing to
Mark Zuckerberg will go down in history as the pioneer of modern social media with his invention of Facebook. Professional Snowboarder Travis Rice can be quoted by saying “Our lives have become digital. Our friends, now virtual. And, anything you could ever wanna know is just a click away” (Rice). In many ways Mark Zuckerberg is responsible for introducing this social change. Zuckerberg paved the way to the social highway that people use all day long.
Olson, Parmy. "Exclusive: The Rags-To-Riches Tale Of How Jan Koum Built WhatsApp Into Facebook's New $19 Billion Baby." Forbes. Forbes Magazine, 19 Feb. 2014. Web. 25 Feb. 2014.
The entire Facebook company is being sued by three owners of ConnectU, which is another social networking site.
Out of all Social Medias the most popular one that most people use is Facebook. Facebook is a social network that makes it easier to interact with people that share the same interests as you. Facebook gives a lot of opportunities for people and business. On Facebook people are able to comment on others posts that they make and can reply to each other, because of this feature communication can be accomplished. Businesses can post ads and or a page for that business and it gives people the opportunity to “like” that business and can widen business contacts and opportunities. Not only is it good for businesses it is also good for society. When people interact with other people that share the same interests as you it can create intimate relationships. Facebook has the advantage for people to interact with each other and because of this long distance relationships are becoming stronger. “The number of people who are seeing a partner who lives more than two hours away has doubled in the last 10 years.” says, the Daily Telegraph Reporter from The Telegraph. Three quarters of those in such relationships said they were eas...
First of all, Facebook is a social network, which means it connects people around the world, allows us to make new friends around the world, builds more relationships, brings some new colors to life. It is very beneficial for