Facebook Buys WhatsApp Social Media for $19 Billion
Facebook is one of the biggest and most dominant social media networks. It recently bought WhatsApp at a whopping $19 billion price tag.
WhatsApp is five years old and is a mobile messaging app with around 450 million global users. According to the stats, prior to being sold to Facebook, the app was gaining around one million users each day.
As is evident from the figures mentioned, it should not surprise you that the app is the leader in the world of messaging apps for smartphones in Europe, Asia and North America. The app comes at a low cost of under $5 per download, with no additional subscription costs.
Why then did Facebook spend so much money on a company that is not going to make a profit? One word explains it all – diversification.
Diversification in Social Media
The reason for the purchase of the app is the users. The company is fully aware that to grow they need to diversify. This is the reason why the company recently completed the purchase of Instagram, the photo sharing site.
The world is becoming more and more dependent and driven by online activities and going by their recent business transactions, Facebook is fully aware of what is required to sustain growth in the market.
It is not expected of small business owners to spend massive amounts of funds to buy out their competitors, however, the moves that Facebook have made should be viewed as a valuable business lesson. However, as a small business owner, you should determine the best social media platforms which will allow you to diversify within your industry. For example, if you active in e-commerce, you may find Twitter to be suitable for […]