8 Apr 2013

Rumor: Google Negotiating 1 Billion Buyout of WhatsApp

According to a post by Digital Trends, Google is planning to acquire the most famous cross-platform messaging app – WhatsApp in a reportedly billion dollar deal. The site reports, that the discussion has been ongoing for quite a while with the final price being the thorn in the agreement, with WhatsApp playing “hardball” to drive up the price.

WhatsApp has already shown the world that its monetization scheme is extremely effective. Its yearly but nominal $0.99 subscription fee keeps the service ad-free. Behind the scenes however, WhatsApp also generates revenue through profitable partnerships with international telecommunications companies. Whatever Whatsapp is doing is working, it is doing it right, with declining SMS usage around the world being directly linked to the success of the app.

With Facebook taking a huge step forward in the messaging ecosystem, via Facebook Home and the continuously improving Messenger (with free voice calls), Google’s attempt to acquire WhatsApp feel like steps in the proper direction.

It is also important to remember that, according to many reports Google is set to discard its numerous messaging services for an all in one – Google Babble (or Babel). Google Babble is expected to be revealed in May at thee Google I/O event. If Google wants WhatsApp to be a part of Babble, it may well have to hurry and get the deal done and dusted.

Will Google continue support for iOS (remember, Sparrow the mail client?)? Will Google integrate it into the Android OS? All these question remain unanswered and only time will tell. Nevertheless, if Google does manage this acquisition, it will be a great step forward for Google in the world of communication.

So far Google and WhatsApp have not released any statements regarding the rumor.

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Source: Digital Trends

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