Facebook Inc (NASDAQ:FB) has raised many eyebrows by acquiring Whatsapp for a whopping $19 billion during the second half of 2014. But Reports shows that Whatsapp has close to 800 million active users. This tremendous growth of Whatsapp now suggest that Facebook Inc (NASDAQ:FB) has some justification behind the huge price tag on the messenger service. But how are Facebook planning to use this messenger service and monetize the market? When a company like Facebook Inc (NASDAQ:FB) decide to invest $19 billion in a company, they might have had a clear strategy to make more money out of it. But what is that strategy? Bloomberg’s contributing editor David Kirkpatrick talked on Bloomberg TV about Facebook’s strategy for Whatsapp.
Is there a secret master strategy for monetizing Whatsapp? Kirkpatrick doubts that if there is any secret master strategy, but he feels that Facebook Inc (NASDAQ:FB) is confident of the fact that they can easily monetize Whatsapp. He pointed out at an analysts estimate that Skype makes $2 billion revenue in a yea. He said that Whatsapp did phone messaging and has also started calling facility and if Facebook start charging the service it could be a huge potential revenue generator for Facebook.
Kirkpatrick thinks that there are a lot of ways to make money out of Whatsapp. He said that Zuckerberg’s idea is to add as many users as possible and work out the financial part of the platform later. Facebook currently has a mother of all platforms with all the newsfeeds and generating a lot of ad revenues for the company on one side, whereas on the other side they have a lot of small services like Whatsapp with 800 million users, Instagram with 300 million users and messenger with 600 million users. Is there any way Facebook can stitch all of them together and make one big global platform?
“I don’t think they have to stitch together too tightly. I think the key thing is they are all sort of integrated underneath from a data point of view. Just the kind of thing, that a lot of people do worry about. Let’s admit. It is interesting if you count together Instagram, Whatsapp and Facebook messenger, you get 1.7 billion users, many of them ofcourse overlapping. But that’s even a bigger number than the 1.4 billion that Facebook has on its own. But I do think there is clearly a strategy to build the constellation of products that continue to strengthen Facebook’s ability to provide communications of a wide variety of types to its users,” Kirkpatrick said.
Kirkpatrick also said about Facebook Paper which integrates Facebook platform on iPhone better the current app on iPhones.
Disclosure: None
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