Boston, MA 02/24/2014 (wallstreetpr) – Facebook Inc. (NASADQ:FB) has officially announced the addition of WhatsApp under its portfolio after completing a $19 billion acquisition awaiting customary and legal closing conditions. The move has been viewed from many quarters as a strategic acquisition by Facebook as it plans for the future. WhatsApp adds a unique way of messaging that is real time than Facebook s current messenger/ chat products.
WhatsApp will help Facebook Inc. (NASADQ:FB) target the younger generation rapidly, as this is the only generation that is engaged in messaging more rampant than others. Some investors are of the opinion Facebook might have overpaid for the messaging App as the company shares fell by 2.28% immediately after the acquisition, awaiting to see what will happen in the coming trading sessions.
Facebook financial power
It goes without saying, Facebook Inc. (NASADQ:FB) has the much needed financial power to buy whatever competition it feels like, that in the long run will boost its revenue. Facebook investors and shareholder seem not to be perturbed by the acquisition as Facebook expensive stock continues to be up to task. WhatsApp could be a piece of cake for Facebook in the long run considering it has a total of more than 450 million membership subscription with 70% of those thought to be active users higher than the 62% that Facebook enjoys.
WhatsApp on its own facilitates over 19 billion messages sent on each day with 34 billion being received which is approximately the size of the entire global SMS market. WhatsApp is sure to expand Facebook Inc. (NASADQ:FB)’s reach from both users to products perspectives. Facebook expects to have a wider and massive mobile user base for its core product Facebook Instagram and WhatsApp, this also provides another avenue for the company to sell its ads that has proved to be lucrative overtime in terms of revenues.
Facebook Inc. (NASADQ:FB) dipped on Friday trading session by 1.49% to close the week at a low of $68.59