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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

#731
As I tweeted this morning: https://twitter.com/dan_hopwood/status/436411010212454400

WhatsApp is to messaging what PayPal is to payments. Right product, right time. Slow design iteration & little innovation over time. But as we've seen, it hasn't mattered. Stripe, Line, WeChatApp know all too well that moving off such established players is tough.. but not impossible.

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

#732

Earlier quoted context omitted.

I'll admit to a distinct feeling, that I've started to lose touch with pop technology. I've never heard of WhatsApp. Though I had most definitely heard of Hotmail in 1998.

It's not really "pop" technology. Surprisingly, it's not used much in the United States, but in India it's basically a replacement for text messaging. Everyone from a 13 year old child to my grand mom uses it to keep in touch with friends and family members across the globe. IMHO, they were able to get to such widespread everyday usage because they such awesome and reliable technology. Much better than what Google ha…

Still struggling to figure out why it's so popular. I read the other article[1] on the front page suggesting that the reason for the popularity is that the app works on low end handsets. But then so does SMS. Is the design of WhatsApp so much better than built in SMS, or is it just the fact that WhatsApp is free? [For me and most people I know SMS is virtually free, but I guess that's not the case around the world]

[1] http://blog.textit.in/your-path-to-a-$16b-exit-build-a-j2me-...

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

#733

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…

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

#734

Does anyone know any alternatives (with group chat)?

MySMS is a similar service that also enables to send text messages via a desktop (web) application. I've been using it for a while. It can be a bit buggy though - not as polished as Whatsapp.

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

#735

Earlier quoted context omitted.

It's not really "pop" technology. Surprisingly, it's not used much in the United States, but in India it's basically a replacement for text messaging. Everyone from a 13 year old child to my grand mom uses it to keep in touch with friends and family members across the globe. IMHO, they were able to get to such widespread everyday usage because they such awesome and reliable technology. Much better than what Google ha…

Still struggling to figure out why it's so popular. I read the other article[1] on the front page suggesting that the reason for the popularity is that the app works on low end handsets. But then so does SMS. Is the design of WhatsApp so much better than built in SMS, or is it just the fact that WhatsApp is free? [For me and most people I know SMS is virtually free, but I guess that's not the case around the world] […

It's popular over SMS because:

- It's not 10c/p per message which if you're talking a lot adds up. - You can send photos and videos and they show up in the stream. MMS isn't actually configured for most people even if it didn't cost 50c a message. - It does group messaging. - Avatars, UI etc

The reason it's popular over apps I think is largely down to savvy use of network effects, particularly that your username is your phone number, so it can scan your phone book and instantly show you who you know that has it. Plus it's available on iPhone, Android, Blackberry and as that article at the top of the main page says, J2ME (news to me but I'm in Europe so not that many feature phones around these days).

I'm from the UK but live in Barcelona and it has 97% penetration here.

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

#736
post #724

Earlier quoted context omitted.

SMS was (still is) huge in the UK too, but all of my friends started using WhatsApp because you could send pictures to each other on WhatsApp without having to use MMS which cost more, was always a hassle to set up and wasn't available on every phone back in the beginning.

I'm in the UK and I'd never heard of WhatsApp until now. I wonder if a lot of these people who say 'X app is big in my country' actually just mean 'X app is popular within my social circle'.

WhatsApp has about 50% of the mobile messaging market in the UK, so no, it's just you ;)

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

#737
post #724

Earlier quoted context omitted.

SMS was (still is) huge in the UK too, but all of my friends started using WhatsApp because you could send pictures to each other on WhatsApp without having to use MMS which cost more, was always a hassle to set up and wasn't available on every phone back in the beginning.

I'm in the UK and I'd never heard of WhatsApp until now. I wonder if a lot of these people who say 'X app is big in my country' actually just mean 'X app is popular within my social circle'.

[deleted]

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

#738
post #724

Earlier quoted context omitted.

SMS was (still is) huge in the UK too, but all of my friends started using WhatsApp because you could send pictures to each other on WhatsApp without having to use MMS which cost more, was always a hassle to set up and wasn't available on every phone back in the beginning.

I'm in the UK and I'd never heard of WhatsApp until now. I wonder if a lot of these people who say 'X app is big in my country' actually just mean 'X app is popular within my social circle'.

> I wonder if a lot of these people who say 'X app is big in my country' actually just mean 'X app is popular within my social circle'.

Yes, that is exactly what it means unless there's some research data provided. Obviously it is easier to scale our current surroundings to the whole country, than to really go around and see how things are outside our social circle. Then again, same applies to you too, just because you haven't heard of WhatsApp before doesn't mean it wouldnt be big in the UK. :)

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

#739

Earlier quoted context omitted.

I have a hard time believing that the density of WhatsApp-capable phones is higher across the developing world (where WhatsApp is popular) than in the US.

Probably not, but it's close to equally high, which is one of Whatsapp's strong points. Additionally, it's not just popular in "the developing world" (whatever that means), but also in many European countries. I haven't seen a map, but I suspect that Whatsapp is very popular nearly everywhere outside the US and China.

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

#740

Earlier quoted context omitted.

WhatsApp has huge global growth. I heard that little chirp everywhere I went in India. friends in Africa use it all the time. in countries with SMS charges, whatsapp is a good deal.

> in countries with SMS charges The funny thing is that in places like USA, you pay exorbitant amounts (~20 USD per month) for text messaging (when the real cost should be almost 0), yet it's still not caught on here - which is kinda sad.

I remember that the US didn't really use SMS for a long time, but everybody in Europe did.

The US at the time had generous calling plans, and people there didn't yet discover the nice social effect of communicating silently (with texting).

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