Facebook, Inc., now known as Meta Platforms, paid for WhatsApp. This significant acquisition took place in 2014, marking it as Facebook's largest purchase at the time.
The Landmark Acquisition of WhatsApp
On February 19, 2014, Facebook, Inc. publicly announced its intent to acquire the popular messaging service, WhatsApp. This monumental deal, valued at US$19 billion, came just one year after WhatsApp's venture capital financing round, which had valued the company at $1.5 billion. The acquisition highlighted Facebook's strategic move to solidify its dominance in the mobile communication space.
Below is a summary of the key details regarding this pivotal acquisition:
| Detail | Description |
|---|---|
| Acquirer | Facebook, Inc. (now Meta Platforms) |
| Acquired Company | |
| Announcement Date | February 19, 2014 |
| Acquisition Price | US$19 billion |
| Previous Valuation | US$1.5 billion (one year prior to acquisition by venture capital) |
Strategic Rationale and Impact
The acquisition of WhatsApp by Facebook was a bold move that had several strategic implications for the tech giant:
- Market Dominance: It allowed Facebook to secure a leading position in the rapidly growing mobile messaging market, preventing competitors from gaining a significant foothold.
- User Base Expansion: WhatsApp brought a massive global user base, instantly expanding Facebook's reach beyond its core social network and Instagram.
- Future Growth: The acquisition was seen as a substantial investment in future mobile communication trends and a way to integrate WhatsApp's end-to-end encrypted messaging capabilities into Facebook's broader ecosystem.
- Technological Integration: While WhatsApp largely operated independently post-acquisition, its technology and user insights provided valuable data and opportunities for cross-platform integration over time, influencing features across Meta's family of apps.
In essence, Facebook, Inc. made a substantial investment to acquire WhatsApp, demonstrating its commitment to expanding its digital footprint and influence in the global communication landscape.
