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FACEBOOK BOUGHT WHATSAPP AND INSTAGRAM



“If you are on social media, and you are not learning, not laughing, not being inspired or not networking, then you are using it wrong.”

― Germany Kent





Facebook bought Instagram in 2012 and WhatsApp in 2014, and they are each used by more than 1 billion people. Instagram today has over one billion users and contributes over $20 billion to Facebook's annual revenue, as it pulls in younger consumers at a much faster rate, attracting more advertisers. All three are listed top on most downloaded apps between 2010 and 2019.


WHAT IS FACEBOOK?

Facebook is an American app, which is a popular global social networking website. It was founded on February 2004, by Mark Zuckerberg and his roommates at Harvard, who were Eduardo Saverin, Andrew McCollum, Dustin Moskovitz and Chris Hughes. Facebook is considered as one of the most valuable companies in the world. And, also one of the five big companies in the world alongside Amazon, Apple, Google and Microsoft. Facebook also offers other products and services apart from its social networking platform which are Facebook Messenger, Facebook Watch, and Facebook Portal. It has also procured other apps like Instagram, WhatsApp, Oculus VR, Giphy and Mapillary, and also has a stake of 9.9% in Jio Platforms.


FACEBOOK BOUGHT WHATSAPP



WhatsApp is an American app founded by Brian Acton and Jan Koum, who were the former employees of Yahoo. It is one of the widely used apps in the world. It is used for sending free messages, contacts, voice mails, sharing photos, videos, and sharing location. It is also used for video calling and talking to friends and family across different parts of the world.

On February 19, 2014 Facebook publicized the attainment of WhatsApp. The founders attached a price of $16 billion, that is 4 billion in cash and remaining $12 billion in Facebook shares. But Facebook bought it for $19.6 billion and $3.6 billion for WhatsApp employees to stay on board at Facebook as compensation. It was the largest acquisition of Facebook up to date and the largest acquisition of a venture-backed company in history. Facebook paid $4 billion in cash, as guided by Allen & Co, $12 billion in Facebook shares, and an additional of $3 billion in restricted stock units granted to WhatsApp's founders Jan Koum and Acton. A few days after the announcement of acquisition, WhatsApp users experienced a loss of service, which led to anger and frustration across social media.

As a result, this caused a significant number of users to try and change to other message services like Telegram, which claimed that it attained 8 million new users. Later in August 19, 2019 WhatsApp changed its tag to "WhatsApp from Facebook", which was after 4 years stating, "We want to be clearer about the products and services that are part of Facebook."



FACEBOOK BOUGHT INSTAGRAM

Instagram is an American social networking app. It is used for sharing photos, videos and sending messages and communicating with people across the world. This app was developed by Kevin Systrom and Mike Krieger. This app was launched on iOS on October 2010. The android version was later released in April 2012. This app is available in almost 12 languages.





FACEBOOK on April 9, 2012 bought Instagram for a sum of $1 billion. On August 14, 2012 the Britain’s Office of Fair Trading permitted the deal and on August 22, 2012 the Federal Trade Commission in the U.S. allowed the deal to continue and closed its investigation. The deal between Instagram and Facebook officially closed with a total price of $300 million in cash and 23 million shares of stock. According to CNN, the deal closed just before Facebook's scheduled initial public offering (IPO). This deal price was also compared to the $35 million paid for Flickr in 2005. Mark Zuckerberg said Facebook was “committed to building and growing Instagram independently”. It is also said that Facebook bought Instagram because it saw it as a threat to them.


Facebook has bought the world's two most widely used apps in the world, and now its ruling the world.





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