Facebook Dials Into Mobile Messaging Market
EU Clearance for WhatsApp Takeover: Facebook Dials Into Mobile Messaging Market
Facebook has done it again. It has managed to take yet another step towards a lion's share of the mobile messaging market. EU has just given clearance for the company to acquire the mobile messaging startup WhatsApp in a proposed takeover amounting to USD $19 billion. This is the largest deal made to date for the 10 year old social media company. FB is now seeking a chunk of the mobile messaging services sector through this acquisition.
With its latest (and largest) acquisition, Facebook is also entering into the telecom industry. It will now have rivals such as Orange, Telecom Italia and Deutsche Telekom. Facebook is planning to add free voice call services for its millions of customers at a later point in the year, according to Reuters.
The EU Commission has said the Facebook WhatsApp deal will not affect competition in any way. In their statement quoted by Reuters, the European Commissioner Joaquin Almunia has said "We have carefully reviewed this proposed acquisition and come to the conclusion that it would not hamper competition in this dynamic and growing market. Consumers will continue to have a wide choice of consumer communications apps.”
It was Reuters which first reported on September 25th that the deal could be cleared unconditionally. In the month of April, US regulators had given their approval to the deal as well. Free text messaging option made WhatsApp a big hit and Facebook will now encash on this. Reuters cited the numbers saying that such mobile messaging services were a threat to telecom operators because they have a massive share of revenue in the market.
This is a landmark deal for Facebook Inc, says Value Walk. It estimates that this will give FB a strong lead in the mobile messaging market. Where cell phone companies charge for SMS, WhatsApp offers the advantage of free text messages. This is a massive plus if SMS is being used for bulk messages and constant communication, especially in offices.
WhatsApp Users also get the chance to participate in group chats and photo, video and location sharing. An added advantage of this app is that it can be accessed from multiple online platforms including Windows Phone, Nokia S40, Android, BlackBerry and iOS. With plans to add free voice call services for FB customers, WhatsApp has a formidable arsenal which can make a significant dent on rivals in the telecom industry.
Rather than just being content with social media, FB has dared to dream and become bigger through its latest acquisition. One waits to see if the Facebook-WhatsApp marriage is likely to prove profitable for its users.
