- WhatsApp is the only app with better engagement and a greater proportion of daily users than Facebook (FB), says Mark Zuckerberg on a CC discussing Facebook's reasons for spending up to $19B to buy the messaging upstart..
- Zuck also praised WhatsApp's engineering team for creating a service with unmatched speed and reliability. VC backer Jim Goetz echoes that sentiment, and notes WhatsApp has only one developer for every 14M active users.
- Both Zuck and WhatsApp CEO Jan Koum insist the service won't feature ads, and the latter says monetization isn't a near-term priority. Many see the deal as being less about monetization than about (expensively) heading off an emerging threat.
- Zuck also argues WhatsApp and Facebook Messenger serve different purposes - the former acts as an SMS replacement, the latter as a way to have IM-like chats with friends.
- Facebook's presentation slides (.pdf) note WhatsApp's daily traffic includes 19B messages (approaching global SMS levels), 600M+ photos, and 100M+ video messages, and that these figures are all up over 100% Y/Y.
- Nonetheless, plenty of jaws have dropped over the deal's price tag. WhatsApp is being assigned a valuation higher than that of 235 S&P 500 components.
- FB -2.9% AH. Previous: Facebook buying WhatsApp, details.
No ads for WhatsApp; Zuck praises startup's engagement rates
Feb 19 2014, 19:02 ET