Newsletters
News & Information for Technology Purchasers NewsFactor Sites:       NewsFactor.com     Enterprise Security Today     CRM Daily     Business Report     Sci-Tech Today  
   
This ad will display for the next 20 seconds. Please click for more information, or scroll down to pass the ad, or Close Ad.
Home Enterprise I.T. Cloud Computing Applications Hardware More Topics...
Vblock™ Systems:
Advanced converged infrastructure
increases productivity & lowers costs.

www.vce.com
Mobile Tech
24/7/365 Network Uptime
Average Rating:
Rate this article:  
Is the WhatsApp Messenger Worth a Billion to Google?
Is the WhatsApp Messenger Worth a Billion to Google?

By Jennifer LeClaire
April 8, 2013 10:19AM

    Bookmark and Share
"Two of Google's biggest competitors, Apple and Facebook, have their own messaging apps," said analyst Greg Sterling of reports that Google is in talks to buy WhatsApp. The WhatsApp messaging client "would presumably become Google Messaging or something similar and be folded in as a native component of Android."
 


What's in an app? Well, if it's WhatsApp, there could be a billion-dollar payoff -- from Google. Google is reportedly in talks to buy WhatsApp for a cool billion bucks.

WhatsApp Messenger is a cross-platform mobile messaging app. The app allows you to exchange messages without having to pay for SMS. WhatsApp Messenger is available for iPhone, BlackBerry, Android, Windows Phone and Nokia.

WhatsApp Messenger uses the same Internet data plan that you use for e-mail and Web browsing, which is why there's no cost for texting through the app. But WhatsApp is more than a messenger. The app also lets you create groups, send unlimited images, voice and audio messages. And it's advertisement free, at least until Google buys it (if Google buys it). WhatsApp charges users a yearly fee of 99 cents after the first year of use.

A Must for Google?

According to news reports, Google and WhatsApp have been in talks for at least a month -- and WhatsApp is pushing the limits on the acquisition price. WhatsApp may have some leverage based on its popularity with consumers. The company said it broke a record on New Year's Eve, receiving 7 billion inbound messages and transmitting 11 billion outbound messages in a single day.

Neither Google nor WhatsApp could be reached for comment. This isn't the first time the rumor mill speculated that Google would by the company. Facebook has also been listed among potential acquirers. But all fingers point to Google as the impending owner of the messaging app.

Greg Sterling, principal analyst at Sterling Market Intelligence, said there are two reasons Google would be interested.

"Two of Google's biggest competitors, Apple and Facebook, have their own messaging apps," Sterling told us. "This would presumably become Google Messaging or something similar and be folded in as a native component of Android," Sterling said. "Gmail messaging hasn't taken off. It's not clear how popular or successful mobile messaging on Google+ is."

What's at Stake

The messaging app market is getting increasingly competitive and it would make sense for Google to enter the fray. Beyond WhatsApp, there are other smaller acquisition targets like Line, WeChat and KakaoTalk. All three have proven they have a place in consumers hearts.

Consider the messaging app acquisition and development scene over the past couple of years. Facebook acquired Beluga in 2011. Samsung debuted a proprietary messaging app called ChatOn in late 2011. Deutsche Telekom invested $7.5 million in Pinger last February. In March 2012, South Korea's dominant mobile carrier bought MadSmart to gets its hands on the messaging app TicToc. Yahoo Japan last October bought a 50 percent stake in Kakao's Japanese subsidiary.

Carriers are feeling the pinch. In fact, according to a research report from Ovum, texting apps like WhatsApp have drained $23 billion in revenue from carriers as of the end of 2012.
 

Tell Us What You Think
Comment:

Name:



APC has an established a reputation for solid products that virtually pay for themselves upon installation. Who has time to spend worrying about system downtime? APC makes it easy for you to focus on business growth instead of business downtime with reliable data center systems and IT solutions. Learn more here.


 Mobile Tech
1.   OnePlus One Boasts Android Weapon
2.   Samsung: $2.2B Too Much for Apple
3.   Review: Windows Phone Advances
4.   Microsoft-Nokia Deal Closes this Week
5.   Samsung Data Center Catches Fire


advertisement
BlackBerry Drops T-Mobile After Spat
Moving on to other carriers after snub.
Average Rating:
Zebra Buys Motorola Enterprise Biz
Pays $3.45B in all-cash deal.
Average Rating:
OnePlus One Boasts Android Weapon
Smartphone could shake up market.
Average Rating:
Product Information and Resources for Technology You Can Use To Boost Your Business

Network Security Spotlight
What Verizon's Data Breach Report Can Teach Enterprises
It’s probably not a jaw-dropper, but cyberespionage is officially on the rise. And the use of stolen or misused credentials is still the leading way the bad guys gain access to corporate information.
 
Top Cyberthreats Exposed by Verizon Report
Beyond Heartbleed, there are cyberthreats vying to take down enterprise networks, corrupt smartphones, and wreak havoc on businesses. Verizon is exposing these threats in a new report.
 
Where Do Web Sites Stand, Post-Heartbleed?
A security firm says the vast majority of Web sites have patched themselves to protect against the Heartbleed bug, but now there are questions raised on the reliability of open-source programs.
 

Navigation
NewsFactor Network
Home/Top News | Enterprise I.T. | Cloud Computing | Applications | Hardware | Mobile Tech | Big Data | Communications
World Wide Web | Network Security | Data Storage | Small Business | Microsoft/Windows | Apple/Mac | Linux/Open Source | Personal Tech
Press Releases
NewsFactor Network Enterprise I.T. Sites
NewsFactor Technology News | Enterprise Security Today | CRM Daily

NewsFactor Business and Innovation Sites
Sci-Tech Today | NewsFactor Business Report

NewsFactor Services
FreeNewsFeed | Free Newsletters | XML/RSS Feed

About NewsFactor Network | How To Contact Us | Article Reprints | Careers @ NewsFactor | Services for PR Pros | Top Tech Wire | How To Advertise

Privacy Policy | Terms of Service
© Copyright 2000-2014 NewsFactor Network. All rights reserved. Article rating technology by Blogowogo. Member of Accuserve Ad Network.