Facebook and WhatsApp acquisitions (2014)

Summary of the article.

Facebook completed the acquisition of WhatsApp for a deal worth $22 billion in October 2014.
The acquisition marked a significant milestone for Facebook as it expanded its presence in the
mobile messaging space.The final price tag of Facebook’s acquisition of WhatsApp increased by
an additional $3 billion. This acquisition solidified Facebook’s position in the messaging service
market and allowed it to tap into the growing user base of WhatsApp. Meta Platforms (formerly
Facebook, Inc.) has acquired 91 other companies, including WhatsApp, in its history. The
WhatsApp acquisition was valued at $16 billion, making it one of the notable acquisitions by
Meta Platforms. Facebook’s acquisition of WhatsApp for $16 billion was regarded as one of the
best purchases made by the company. The acquisition allowed Facebook to expand its reach and
access new markets, leveraging the popularity and user base of WhatsApp. While Facebook’s
acquisitions of Instagram and WhatsApp have faced scrutiny for potential antitrust concerns, the
focus has shifted to Facebook’s metaverse mergers. The acquisitions of Instagram and WhatsApp
have raised questions about competition and market dominance in the social media industry.
Terms/concepts used in the article.
1. Acquisition: The act of one company purchasing another company, often involving the transfer
of ownership and control.
2. Deal: Refers to the agreement or arrangement made between companies regarding a merger or
acquisition.
3. Price tag: The monetary value or cost associated with a particular acquisition or deal.
4. Mobile messaging: Refers to the exchange of messages through mobile devices, such as
smartphones, tablets, or other portable devices.
5. User base: The total number of users or customers of a particular product, service, or platform.
6. Antitrust: Relating to laws and regulations that promote fair competition and prevent the abuse
of market power by companies.
7. Metaverse: A virtual reality space where users can interact with a computer-generated
environment and other users.
8. Competition: The rivalry between companies in the same industry or market, often related to
gaining market share and attracting customers.
9. Market dominance: Refers to a company or product’s significant influence or control over a
particular market or industry.
10. Social media: Online platforms and websites that allow users to create and share content,
connect with others, and engage in social interactions.
11. Merger: The combining of two or more companies to form a single entity, often with the goal
of achieving synergies and expanding market presence.
12. Antitrust scrutiny: The examination and evaluation of mergers and acquisitions by regulatory
authorities to ensure they comply with antitrust laws and do not harm competition.
13. Market share: The portion or percentage of a market that a company or product controls or
captures.
14. Monopoly: A situation where a single company or entity has exclusive control or dominance
over a particular market or industry.
15. Valuation: The process of determining the financial worth or value of a company or asset,
often used in the context of mergers and acquisitions.
Brief comments/reactions of the article.
I observed several responses emphasizing the strategic importance of the acquisition, as it
enabled Facebook to expand its reach and tap into a large messaging service user base.
Simultaneously, there were concern regarding its potential effects on competition and market
control. In summary my view of the acquisition included both supportive and doubful
viewpoints, illustrating the complex dynamics of such prominent mergers and acquisitions.