As you know Facebook stunned the tech world by acquiring WhatsApp for a whooping $16 billion (€ 12 billion approx). An no it wasn't because Mark Zuckerberg's subscription to WhatsApp ran out.
The real real deal behind Facebook taking such a shocking decision would lie in the hands of the youth. Facebook has been facing a issue of declining of pre-teen & teenagers. When Facebook CFO David Ebersman announced a decline in the daily usage from its teen market segment in October 2013, investors showed a loss in confidence in the company which resulted in volatile share prices. Since investor confidence hinges on the revenue potential from all demographic segments; the youthful consumer spending is a large source of earnings for any online platform.
Facebook builds its credibility by promoting products such as fashion, technology and other lifestyle brands on its platform and since the youth consumer spending market make up for more than $200 billion alone in the USA, this causes significant interest to investors and companies the world over. Of lately the grey haired socity encroachment on Facebook has led to a loss of its "being cool" among the youth and there by making WhatsApp a more convenient and "cool" mode for instant communication. Keeping all this in mind Facebook decided to acquire WhatsApp as a part of its plan on M and As.
Got more dirt on this deal? Post it as a comment below.
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