According to a new report Facebook is not in a hurry to cash in on WhatsApp for its return on investment (ROI). Facebook’s CEO, Mark Zuckerberg said that the company does not have a short-term plan on how to make money out of WhatsApp in his speech in India on Thursday. Zuckerberg stated that Facebook is not drafting plans for the ROI related to WhatsApp, at least for the short term.
On Monday Facebook completed its acquisition of WhatsApp, which is the largest deal of such kind for Facebook. The initial value of the acquisition was $19 billion, and it included cash and stocks, but because of the rise of Facebook’s shares, the final value of the transaction rose to $22 billion. Another part of the acquisition was related its legal side i.e. Facebook reassured the authorities that WhatsApp will not merge with the social network, but will stay as an independent application.
WhatsApp has over 600 million users worldwide and is the most popular messaging app. It’s used for sending messages to and from mobile devices. Facebook has its own messaging app for smart phones, which is very popular, but comes second to WhatsApp. WhatsApp can operate on various types of smart phones, without advertising. It only charges 99 cents as an annual subscription fee after one year of free usage. When Facebook announced its plans to acquire WhatsApp analysts expressed doubts about the company’s ability generate sufficient revenue that would justify the large expenses of the acquisition. At this moment it seems that Facebook hasn’t just yet come up with a plan on how to do that.
With this acquisition Facebook will be in a better position to influence the company and improve its financial results. It’s expected that in the near future Zuckerberg will have more to say related to the ROI of this large acquisition. Buying WhatsApp will strengthen Facebook’s position in the messaging world.
Facebook’s shares are down less than 1% in the trading on Thursday.