Heavy Weights Announce New Wearables At Mobile World Congress
This year’s Mobile World Congress is shaping up to be a wearable wonderland. The event has only really kicked off in Barcelona but we have already seen three major announcements of new wearable tech coming soon to the market by Huawei, Sony and Samsung.
Facebook just bought WhatsApp, paying $16bn in cash and stock and $3bn in RSUs. WhatsApp has 450m active users, of which 72% are active every day. It has just 32 engineers. And its users share 500m photos a day,
Great analysis from Benedict Evans on the Facebook/WhatsApp acquisition. Go read.
A few thoughts:
– $ 19 billion which accounts for 10 % of Facebook’s market value is just off the charts. But so are WhatsApp’s user numbers. According to Evans, WhatsApp users are sending 18 billion daily messages which is in line with the entire global SMS system.
– At $ 35 each, this deal values WhatsApp users equally to what Google once paid for YouTube users, which might seem reasonable. On the other hand, my stomach tells me that no messaging app can be worth $ 19 billion. It’ll be tough for Facebook to get its money’s worth.
– Many of WhatsApp’s 450 million active daily users are of course already on Facebook, so the deal has a lot to do with Facebook wanting to keep and increase users engagement and attention.
– But there are not just overlapping users when it comes to Facebook’s Messenger service vs WhatsApp. Things change fast in mobile, but the last time I looked into this, Whatsapp had a strong position in regions where Facebook is less dominating, such as for example in Russia.
– This deal as well as WhatsApp’s user and usage numbers once again show the crazy scale and enormous potential within mobile and mobile apps.
Photo: O Canada