For the last 24 hours everyone is talking about Facebook acquisition of WhatsApp. The whopping price point raised everyone eyebrows. Everyone is talking about Facebook strategy to acquire user base and monetize through Advertisement. The interesting part of the whole acquisition is bit ignored. Facebook observed growing popularity of SnapChat in US whereas WhatsApp growing presence in emerging countries. Now a day’s most of the device manufacturer preload WhatsApp by default as it’s the expectation of mobile device buyers that WhatsApp must be there. Facebook captured market place from Orkut because of its offering of Photo sharing and snatched most of the active Orkut user base. WhatsApp story is nothing different. In last 3 years, there simplistic user interface and privacy through groups attracted active mobile user and sharing of information started happening on WhatsApp. More interestingly that the services offered to users were free from advertisements. Facebook must have seen the deflection of user interest as well as observed heavy traffic on WhatsApp. Buoyant by Dec 2013 result where Facebook successfully demonstrated impressive growth through advertisement and shifting access trend on Mobile from Web also attracted Facebook interest to captured riped fruit which can be readily used to mint advertisement money and command premium for pushing targeted advertisement. Still I would term this deal as” New Time Warner and AOL merger” and in next few years Facebook would regret for its decision to acquire potential threat.
