Decade-Long Journey of WhatsApp After Facebook’s Acquisition

In 2014, when Facebook acquired WhatsApp for $19 billion, Mark Zuckerberg assured that he would not get involved in the functions of the messaging app. However, in 2019, WhatsApp’s popularity and business potential made Facebook reconsider its policy.

Meta’s Dependence on WhatsApp and Its Business Growth

Meta, which owns Facebook, Instagram, and other apps, has identified WhatsApp as crucial to its future. More than 2 billion users globally and over half of Americans ages 18 to 35 who own a cellphone use WhatsApp, making it one of Meta’s fastest-growing services. The company is aiming for $10 billion in revenue from ads on WhatsApp and Messenger, a testament to the app’s rapid growth and potential.

The Significance of WhatsApp to Meta

While Meta has been investing in future-facing technology, apps like WhatsApp are the key to its financial growth. In 2020, amidst the global economic downturn, Meta relied on its core apps to drive sales growth, hence shaping WhatsApp as the cornerstone of its business.

Evolution of WhatsApp and its Key Features

Initially designed as a fast, free, and secure messaging service, WhatsApp has grown under Facebook’s ownership, with features such as end-to-end encryption, emoji reactions, disappearing messages, and cross-platform compatibility. The app’s accessibility, ease of use, and value have contributed to its global popularity.

WhatsApp’s Business and Advertising Potential

WhatsApp’s focus has shifted to include business communication tools, customer service integration, and advertising. The platform’s “click-to-message” feature embedded within Facebook has become Meta’s fastest-growing ad format, offering brands a direct line to consumers.

See also  Ripple Abandons Fortress Trust Acquisition Due to Security Concerns

Challenges and Regulatory Hurdles Faced by WhatsApp

Despite its growing popularity, WhatsApp faces competition from other messaging apps and regulatory challenges. Its biggest competitor, iMessage, and smaller rivals like Signal and Telegram pose stiff competition. Regulatory hurdles relating to encryption in Europe also add to the app’s challenges. Nevertheless, WhatsApp continues to diversify its offerings, such as the introduction of “Channels.”

Future Prospects of WhatsApp and Meta’s Vision

As WhatsApp expands its offerings and engagement tools, Meta is positioning the app as a household name for various activities, from shopping to staying informed. The company plans to leverage WhatsApp’s wide-reaching influence to lead the private social platform of the future.



### News source: economictimes.indiatimes.com

By Team