Rumour: Google Plans To Buy WhatsApp For $1 Billion | TechTree.com

Rumour: Google Plans To Buy WhatsApp For $1 Billion

Search giant could be planning to use the technology to unify its various messaging services.

 

WhatsApp, one of the most popular cross-platform IM clients being used on smartphones today, is likely to be bought by Google for an estimated $1 billion according to a report by Digital Trends. The two companies are said to have started talks about the deal last month. Buying the messaging app will present Google with an opportunity to unify its various messaging services such as Google Chat, Google Voice, and Google Hangouts.

There is a reason why WhatsApp is popular. At a time when the government has clamped down restrictions on the number of SMSes, WhatsApp provides a way to bypass the constraints and be able to send enhanced messages that can even have attachments. The beauty of this app is that it is free to use for a year and then the user is asked to pay just $1 per year so that the app doesn't have any advertisements. The only real cost incurred by the user would be that of data transfer, which is not much when you send text messages. This reason for popularity seems to have been the prime motivation for Google to be planning to purchase the company even at an inflated price, when the actual valuation states it to have annual revenue of $100 million.

This invariably reminds us of how the social networking giant Facebook bought Instagram photo app for the same amount. It won't be wrong to assume that FB bought Instagram as a long term investment with FB mobile in mind and to let its subscribers use the photo effects on the pictures they share. Google could be planning to use WhatsApp in a similar way with its Android mobile platform in mind. End-users such as us need not worry because we think that the search giant will not make WhatsApp exclusive to its own platform, because doing so would actually be counter-productive and take away the main USP of WhatsApp (being a cross-platform IM) and the very reason that the company is reportedly planning on investing so much money. On the contrary, Google may actually be able to utilise the technology better by integrating it with its own messaging and social networking services. Google and WhatsApp have not yet commented officially about this situation, but we can expect some details soon.


TAGS: Apps, Internet, Android, Google

 
News Corner
IMP IMP IMP
##