Last week’s talking point was undoubtedly Facebook’s $16 billion acquisition of WhatsApp. As ever, The Practice team loves a good debate, so today we’re wondering about Facebook’s motive for this, and just what this move signals for both parties. 

We weren’t surprised with the news of Facebook’s new purchase- after all, adding WhatsApp to its books is certain to increase Mark Zuckerberg’s social media empire and presence within the mobile sector. But the move also made us ask the all-important question: just how will Facebook generate revenue? For now, WhatsApp and Facebook have both stated that nothing will change, with the former continuing to act independently. Secondly, it will remain free from adverts whether that be from in-app banner ads, or from companies sending users targeted messages. Its purchase, Zuckerberg maintains, is “to make the world more open and connected.” From this statement, although generic to say the least, it is evident that Facebook’s main focus for the future will be on connectivity; that is, using WhatsApp as a way to reach those in developing countries who can’t access the social media platform. For now then, we can say that Facebook’s purchase isn’t about making money immediately- rather, it’s about acquiring a useful asset for the future, or if we’re being cynical, ensuring the company’s God-like dominance over the Internet.

Many, however, are worried that Facebook’s ownership of one of the world’s most widely used social network, photo-sharing app (Instagram), and now the fastest growing mobile messaging service, will give the company unparalleled access to a vast amount of data. “You guys have more information than NSA, RAW & ISI combined”, noted one commenter on Zuckerberg’s blog, making for quite an ominous thought. Indeed, Facebook’s money-making scheme might well arise from the data it holds on all of us if it partners with advertisers who can use it to enhance their targeted advertising campaigns. And very appropriately, WhatsApp has now announced that it will soon launch a free voice service to compete with Viber, Skype, and other sector leaders, generating even more scope for not just “connecting the world”, but gathering further data too. It might only be a matter of time before both companies find some way to allow advertisers to tap into the lucrative links, images, personal data, and messages that WhatsApp holds.

We certainly think that the question we need to be asking about Facebook’s acquisition is not; “Why?” but; “Why not?” Facebook can only stand to benefit from the purchase if it wishes to expand its services and reach into developing countries, become a powerful data source for advertisers, and stay relevant as a company that can boast owning one of the most successful start-up apps to date. But we think that the overriding reason for this purchase adheres to Facebook’s strategy from the start- to succeed in mobile, hence why it now owns two of the world’s most powerful mobile apps.

What do you think of the news? And how do you think WhatsApp will develop over the next few years now that it’s under Facebook’s ownership? What would you like to see happen? We’d love to hear your opinions, so please tweet to us @PracticeDigital and share your thoughts on our Facebook page.