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How did WhatsApp generate revenue?
WhatsApp makes money by charging registered businesses for slow replies. Businesses are allowed to respond to messages from users for free for up to 24 hours but are charged a fee per message for delayed responses, which varies by country.
How much did Mark Zuckerberg paid for WhatsApp?
WhatsApp Acquisition When Facebook announced its plans to acquire WhatsApp in February 2014, WhatsApp’s founders attached a purchase price of $16 billion: $4 billion in cash and $12 billion remaining in Facebook shares. 3 This price tag is dwarfed by the actual price Facebook paid: $21.8 billion.
Is WhatsApp making money or losing money?
It is making money, but not getting a profit. Whatsapp is giving a free service. Now, 1+ billion people are using Whatsapp, and yet, Whatsapp is getting a big loss. Why? Facebook bought Whatsapp for $19 billion dollars and more than 20 million people are paying $1 dollar per year.
How much does WhatsApp cost to use?
In its initial days, WhatsApp relied on what is popularly known as the freemium business model — the product was free for a year to lure users and charged a small yearly subscription fee of $0.99 for continued service. However, many users never paid a dime to use WhatsApp because the service got renewed automatically after their free period ended.
Why is WhatsApp so successful?
“Facebook users were complaining dearly about the lack of one-on-one personalized socializing and sharing, which WhatsApp clearly has been successful with,” said Vidya Nath, research director at Frost & Sullivan. How WhatsApp makes money: WhatsApp is also growing at a blinding speed, adding 1 million new users per day.
Why did Facebook buy WhatsApp for $1 billion?
In many ways, Facebook’s purchase of WhatsApp mirrors its 2012 Instagram acquisition. The $1 billion valuation scared some investors at the time, but as young social network users gravitated towards photo-sharing services, Facebook wanted to scoop up what could have eventually become a big rival.