Facebook’s Acquisition of WhatsApp: The rise of intangibles

The main reason for buying WhatsApp by Facebook was the increased presence and popularity of WhatsApp over the social media space, and the consistent increase in market share and reach over other common apps such as Pinterest and Tumblr. Further, WhatsApp was having a strong presence in developing countries and there was the threat of loss of the presence of Facebook in such countries so Facebook bought WhatsApp messenger. Due to the acquisition of WhatsApp, the mobile connectivity of Facebook increased significantly. WhatsApp was a replacement for SMS communication and it dominated the entire market in terms of mobile connectivity. The company became the fastest growing company in terms of users and the users of Facebook reached 419M users in just 4 years. Further, the usage of WhatsApp as a messenger option, makes the company has a leading preference for the users to use its...