The Inside Story

How Facebook Bought WhatsApp For $19 Billion

There were three reasons Zuckerberg was so fascinated with Whatsapp:

  • He’s confident it’s going to reach 1 billion users in no time. Even with 450 million monthly active users, WhatsApp’s growth rate is faster than Facebook, Instagram, Skype, or Gmail.
  • Of those 450 million monthly active users, 70% come back every day. That’s a stickiness that is unheard of. Zuckerberg is proud that Facebook is among the stickiest ever, and only 62% of its user come back every day.
  • Zuckerberg looked at other products as popular as he expects Whatsapp to be: Tencent, Google search, YouTube, Facebook. They are all extremely valuable.
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