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    Posted February 21, 2014 by
    marcellas

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    Facebook Buying WhatsApp – Was that a wise decision?

     

    Facebook bought WhatsApp for $19 Billion, the biggest deal in the tech industry ever. Now Facebook have Instagrams and WhatsApp both which means that now Facebook will have more information than anyone else. Mark Zukerberg said that this is the most unique and the most creative thing done in history ever. He further said that WhatsApp is the most famous instant messaging App for smatphones according to a research analysis and buying out WhatsApp will improve the position of Facebook. WhatsApp have around 400 million users and the count keeps on growing every month. The service is famous among those who avoid text messages and need some fun during massages like emotions etc. Since it allows users to send pictures and videos instantly like no attachment is required and is one of the easiest messaging services ever.

     

    The deal was done in a way that it includes cash of $4 Billion, $3 Billion Shares and around $12 Billion Facebook shares. The Facebook owner said he accepted Whatsapp was on track to have a billion clients, yet demanded he had no arrangements to place promoting on Whatsapp's interface, saying he didn't think ads were the most ideal approach to profit from informing frameworks.

     

    But there are people who actually opposed that and said that it could have bought lot other things which have actually increased their portfolio. Facebook could have made a lucky unequivocal deliberate portfolio with that cash, with expansion spread over some landmasses empowering them access to rising, outskirts markets and a plenty of unlisted private bundle firms rather they purchase a stage, that they as of recently have called FB delivery person! Elective ventures would enormously decrease the danger premium of the firm providing for it an auxiliary non center salary segment that might determine future income development coupled with an unusual of a Holdings structure carrying with it positive suggestions in duty arbitrage chances and structural visualization potential outcomes, for example, cross offering.

     

    According to CNN Report, they could have built four new towers like WTC. They could have helped Philippines, provided aid to UN or might have planned a digital system of education for students to facilitate them like online life experience degree or learning portals for students. Furthermore, it could have helped people suffering from aid virus for a year.

     

    The decision might be the strategic move of Mark Zukerberg but according to some analysts, the deal could have been much better and lucrative if the same amount of money would have spent on something else that could have been a gold mark on Facebbok’s reputation. Currently it is just impossible to predict the future profits or plans of Facebook because it has just been the start up and the initial stage of this takeover. There must be some hidden facts associated with this deal which will open up in future and therefore currently it nearly impossible to come up with any conclusion which proves that the decision is wise or not. This will only be predicted on later stages. For now we can just wait and watch the changes and improvements in WhatsApp done by the new owner.

    Sources:

    http://www.bbc.co.uk/news/business-26266689

    http://www.bloomberg.com/news/2014-02-19/facebook-to-buy-mobile-messaging-app-whatsapp-for-16-billion.html

    http://www.wellsphere.com/bioethics-article/advantages-of-having-an-educational-degree/2055063

     

    http://www.telegraph.co.uk/technology/facebook/10652397/Facebook-buys-WhatsApp-but-what-could-it-have-spent-the-money-on-instead.html

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