The 29 year old Mark Zuckerberg has thrown another punch to the social networking competition by planning to buy out WhatsApp Inc. – the mobile messaging startup that has gained huge popularity in the past couple of years. The deal has been valued at $19 billion in cash and stock, thus valuing each WhatsApp user at $42.
The buyout brings together the two most happening social media platforms available to the retail consumer. Ever since the arrival of Facebook to the social arena in early 2004 it hasn’t seen much competition except for Twitter. WhatsApp on the other hand has been the next best thing that has gained stunning popularity in the past two years. One can certainly give a pat on the back to Mark Zuckerberg for his eye for possible future competition. Moreover, one can also give him credit for realizing the importance of WhatsApp Inc. in the current market, a company that is currently adding users at the rate of 1 million users daily.
Whatsapp Inc CEO, Jan Koum will continue to operate the mobile messaging function independent from the parent company. What remains to be seen is how these two social networking functions will gel together. Will there be a next level improvement to WhatsApp or will the mobile messaging application lose its sheen?