Why did Facebook spend a fortune on WhatsApp?
February 21 , 2014
Facebook recently ended up spending $19B in order to acquire WhatsApp, which is a messaging service used by 450M users.
Cade Metz of Wire writes that the acquisition is related to teenagers who are spending much less time on the website so the company had to "evolve with the ever-changing tastes of the teenager set." Moreover, WhatsApp has the ability of capturing the attention of users irrespective of "where they are or what else they're doing."
Bloomberg notes that friendship may have played a role in the deal as well considering that Mark Zuckerberg invited the CEO of WhatsApp for coffee back in 2012 and the two have been "meeting frequently for dinners and hiking together" ever since.