How Facebook Buying WhatsApp is Bad Business

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Facebook is set to buy WhatsApp for $19 BILLION! So why does Facebook think WhatsApp is worth billions? Mostly because 400 million users actively use it each month. WhatsApp is an instant messaging app that allows you to essentially message anyone around the World without having to change your service or pay roaming fees. And the app is free! Sure Facebook has 1.2 billion users but, their site doesn’t see the same amount of traffic that WhatsApp gets. Popular in heavily populated countries including China and India. Along with being a competitor to the Facebook Messenger feature Facebook sees another value to this asset. 

When you agree to terms and conditions on Facebook everything you post, every picture, every status, and yes, every message, is the property of Facebook. Facebook owns the information you output. The WhatsApp terms and conditions do not follow this. Your messages on WhatsApp essentially belong to you and not the WhatsApp company. 

The pressing question here is, Will WhatsApp have to change their terms and conditions to comply with Facebook? And will users be aware of this change?

What you need to ask yourself is: Are you comfortable using a messenger that has the ownership to your private messages? 

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One thought on “How Facebook Buying WhatsApp is Bad Business

  1. I think WhatsApp was actually purchased to prevent Google from acquiring it, since they bid directly after Google’s $10 billion cash offer (even though fb is paying mostly in stock and $3B or so in cash). $19B isn’t too impressive when the majority is stock options.

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