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Facebook - Whatsapp Acquisition: by Mohit Srivastava Mohammed Saquib Akash Mahamana
Facebook - Whatsapp Acquisition: by Mohit Srivastava Mohammed Saquib Akash Mahamana
Facebook - Whatsapp Acquisition: by Mohit Srivastava Mohammed Saquib Akash Mahamana
By
Mohit Srivastava
Mohammed Saquib
Akash Mahamana
Jan Koum
CEO of WhatsApp
Mark Zuckerberg
CEO of Facebook
Acquisition
A corporate action in which a company buys most, if not all, of the
target company's ownership stakes in order to assume control of the
target firm. Acquisitions are often made as part of a company's growth
strategy whereby it is more beneficial to take over an existing firm's
operations and niche compared to expanding on its own. Acquisitions
are often paid in cash, the acquiring company's stock or a combination
of both.
Facebook recent acquisitions
Instagram in 2012 worth $1 billion
SnapTu in 2011 worth $70 million
WhatsApp
Founded
Feb 24 2009
Founder
Jan Koum
Stable Release
Operating System
License
Proprietary
Facebook
Founded
Feb 4 2004
Founder
Revenue
US$7.872 billion
Operating income
US$2.804 billion
Net income
US$1.5 billion
Users
It includes
- USD 4 billion in cash
- USD 12 billion worth of Facebook shares
- USD 3 billion in restricted stock units
Why
Acquisition
MAU (monthly active users) will ramp up to 1 billion by 2019
SWOT Analysis
Strengths
Loyal customers
Market share leadership
Group Chat
Avaialable for all platforms
Diversify
Free voice calls
Weakness
Not diversified, because other applications offers the same
service and also function as social media
To access the account can only be paid by credit card only
Only works with a data plan or wifi
Oppurtunities
Continued development of technology platforms
Advanced technology
Recognized application
Modernization of people
Increased demand for smartphones
Threats
Competitors like Wechat, Viber, Tango, Skype, Line
Product substitution
Similar applications and free
Present Status
WhatsApp to add voice call to its product in second half of this year.
Two privacy groups filed a complaint with the Federal Trade Commission to
block Facebook's $19 billion acquisition of messaging service WhatsApp.
The groups want Facebook to provide more insight into how it intends to use
data from the app's 450 million users.
Reference
http://www.insi defacebook.com /2014/02/25/what-others-are-saying-about-fac
ebooks-acquisition-of-whatsapp/
http://www.huffingtonpost.com/quora/why-did-facebook-acquire_b_4875055.h
tml
http://finance.yahoo.com/news/m ust-know-facebook-acquires-whatsapp-162
740629.html
http://
www.inform ationweek.com /software/social/facebooks-whatsapp-deal-under-fi
re/d/d-id/1114183
http://www.forbes.com/sites/adamhartung/2014/02/24/zuckerbergs-3-sm art-l
eadership-lessons-from -facebook-buyi ng-whatsapp
/
http://edition.cnn.com /2014/02/21/opinion/wolf-facebook-whatsapp/
http://indianexpress.com/article/business/world-market/facebook-to-acquirewhatsapp-for-usd-19-bill ion-in-cash-and-stock-deal
/
http://
sequoiacapital.tum blr.com /post/77211282835/four-numbers-that-explain-why
-facebook-acquired
http://m arketrealist.com /2014/02/facebook-acquires-whatsapp-19-billion/
http://
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