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Facebook Buying WhatsApp for $16B in Cash and Stock Plus $3B in RSUs

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Re: Facebook Buying WhatsApp for $16B in Cash and Stock Plus $3B in RSUs

#691
post #671

Earlier quoted context omitted.

By the time smartphones were widely adopted in the US, SMS already had massive market penetration. Trying to adopt something else when your entire social network already uses SMS is a losing game. This is why, IMO, Apple, Google and Facebook are the only companies really in a position to change the messaging game in the US. There is space for newcomers (see: Snapchat), but they're going to have to work hard to spread…

I don't know, SMS was huge in Germany as well, there were unlimited plans etc., still, today everyone uses WhatsApp. Group messages, broadcasts, media, cross-platform, and it's of course easier to convince people to use WhatsApp than Facebook. I lived in the US for a while, and I can't really come up with any reason why it should be different there. Only that way more people are on Facebook (and those are also way mo…

Hm, I could imagine that for those with smartphones unlimited SMS plans came maybe a bit later in Germany than in the US.

When I was shopping for a mobile phone plan for my sister four years ago unlimited SMS were hard to find. Sure, now you get them everywhere, but I don’t think standard smartphone contracts had them four years ago. You had to pay obscenely more (something like double the monthly cost) if you could get unlimited SMS at all. I remember that the high cost of SMS were a real sticking point for my sister.

In my experience smartphone contracts in Germany tended to be much cheaper than in the US but you would also get substantially less for your money. That’s still the case today with included unthrottled data volume.

So maybe that’s one reason why Whatsapp took off. Another one I can think of is that Germany is less of an iOS monoculture than the US. Android is more widespread, so iMessage frequently gets you no benefit at all.

Re: Facebook Buying WhatsApp for $16B in Cash and Stock Plus $3B in RSUs

#692

Earlier quoted context omitted.

"We can assume Facebook is paying for the user base" Respectfully, I don't know if that's the right assumption. Facebook has users. A metric shit-ton of them. :) In fact, many of WhatsApp's users are Facebook users, and vice versa. This isn't a user acquisition play. It's a user engagement play. Facebook -- like everyone else in the world -- is well aware that it has an engagement problem. It also has a retention pro…

>WhatsApp is a lot bigger overseas than it is in the US (largely because it's a free alternative to SMS in countries where SMS carries significant charges). Not nitpicking here, just genuinely curious. What do they charge in US for sms? Here the cheapest package i suppose would be 20,000 SMS per month for $1 per month. I normally use the 1200 SMS per week for 10 cents per week though, as my usage isn't that much.

At this point, I think it's effectively free on every major carrier when the customer has a data plan. I haven't had limits on SMS for at least 4 years (been on Sprint and Verizon).

Re: Facebook Buying WhatsApp for $16B in Cash and Stock Plus $3B in RSUs

#695
post #141

Earlier quoted context omitted.

I'm not sure that sort of relativism makes sense. Making a really bad purchase doesn't make your earlier merely bad purchases less bad.

You really think Instagram was a bad purchase.

Has it made any revenue at all? Let alone 1B?

Are they even getting more users?

Re: Facebook Buying WhatsApp for $16B in Cash and Stock Plus $3B in RSUs

#697

Earlier quoted context omitted.

>WhatsApp is a lot bigger overseas than it is in the US (largely because it's a free alternative to SMS in countries where SMS carries significant charges). Not nitpicking here, just genuinely curious. What do they charge in US for sms? Here the cheapest package i suppose would be 20,000 SMS per month for $1 per month. I normally use the 1200 SMS per week for 10 cents per week though, as my usage isn't that much.

At this point, I think it's effectively free on every major carrier when the customer has a data plan. I haven't had limits on SMS for at least 4 years (been on Sprint and Verizon).

So how much do you pay per month to a carrier?

Re: Facebook Buying WhatsApp for $16B in Cash and Stock Plus $3B in RSUs

#698

Earlier quoted context omitted.

I thought it was the de facto messaging app across the world? Is there any particular reason why it is not used much in US?

By the time smartphones were widely adopted in the US, SMS already had massive market penetration. Trying to adopt something else when your entire social network already uses SMS is a losing game. This is why, IMO, Apple, Google and Facebook are the only companies really in a position to change the messaging game in the US. There is space for newcomers (see: Snapchat), but they're going to have to work hard to spread…

In Spain, SMS was also the main way of communicating with mobile phones (pre- and post-smartphone). The benefit of WhatsApp was that you didn't have to move to a different "social network" with usernames and stuff, it just used your contact list, and that it didn't cost anything besides your internet connection. So if someone had WhatsApp, you used that, otherwise you texted them through SMS. You almost end up avoiding communicating with people that don't have WhatsApp because they cost you money...

Re: Facebook Buying WhatsApp for $16B in Cash and Stock Plus $3B in RSUs

#700

If you have teenager offsprings like me (I've a 13 years old son) you can understand that better maybe. I heard the sentence "We don't need Facebook since there is Whatsapp" an endless number of times from him and his friends. From my point of view at first this didn't made a lot of sense, I considered Whatsapp a no-cost SMS replacement. The reality is that Groups are a killer feature: my son's school class has a gro…

Are the groups better than what you'd be able make/do on Google Hangouts?
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