This is the latest rumor released by digitaltrends, which ,according to an insight, states that Google is in negotiations with WhatsApp for buying their entire service for 1 billion dollars. This could be Google’s next huge acquisition.
Apparently WhatsApp is taking advantage of their growing success and is using this in their negotiation to raise the price as high as possible. For now it seems that the closes price would be $1 billion.
The mobile messaging industry has really grown in the past years, so this year seems like the right moment to actually see at how much such a messaging app, especially the one with the most success on Android, is valued. Google feels that they have a huge gaping hole in the field of messaging apps, so they are thinking of combining Google Babel with Google’s disparate communication services.
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Google definitely has to make a move in the messaging field, especially knowing that Facebook is already there pretty good. So a WhatsApp acquisition would seem highly appropriate this time of year.
However it’s hard to actually calculate the value of WhatsApp. Their main monetization source is from the paid subscription of $0.99 that keeps the app ad-free. Also they have local partnerships with big telecom companies. This also generates them good revenues. According to digitaltrends, WhatsApp has around $100 revenue each year.
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