The owner of Facebook Zuckerberg did a good job acquiring Whatsapp and Instagram. First of all , he newly got ownership of two leading companies in their fields, which will just add value to Facebook and contribute to its growth. He created wealth without spending much money but by printing its own currency of newly created shares as Facebook enjoys billion of dollars of revenues and billions of dollars of shares and market value. Facebook has created wealth and enlarged its values by producing its new own stocks alongside with little cash to buy Whatsapp and at the same time limiting ownership of these shares to its own employees. Though it acquired Whatsapp and Instagram but it left its management free and independent because Whatsapp and Instagram know how to follow market trends and new shifts in technology and applications used.
Whatsapp has 450 million customers and does add value to Facebook that has more than 1 billion users ( 550 million daily active users). As they said that Zuckerberg seems going with market trends and keeping up-to-date with respect to technological development and market. In comparison ,Google got benefits from acquiring many companies like Youtube ,Ita software, Motorolla and others that helped Google grow into one of the largest companies in the world. Will this acquisition make Facebook grow better and larger in terms of revenues and market value as Zuckerberg made his company prosperous and successful starting few years earlier ?
This article was inspired by Forbes Article: Three Smart Lessons From Facebook’s Purchase Of WhatsApp