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WhatsApp got that users need and why is it worth $19 billion?

What's so special about WhatsApp?
What's so special about WhatsApp?
Ariel Zambelich / Wired

Reported yesterday, Google lost an app offer to Facebook.

WhatsApp got that users need is; free texting, building internet social circles with zero ad clutter, and it's free for the first year, after that it can cost users $1 a year. No that wasn't a typo, $1 a year. Plus it can be used between a variety of mobile devices, which keeps everyone connected.

Seems like a piece of the industry that will give Facebook an innovative and global position to stay top dog, especially in terms of apps for social mobile devices.

This app hasn't taken off in America, just yet. But users abroad love it, in one year the app almost doubled in users. Imagine, no more distraught parents scolding their teenagers for excessive cell phone bills due to their kids obsessive texting disorders.

Head of Research at Rutberg & Co. a technology investment bank, Rajeev Chand said, WhatsApp got that users need is savings.

"In markets like India and Spain, WhatsApp is a significant cost savings for users relative to SMS, which is a key driver for its growth," said Chand.

O.k., so the cost savings is there for WhatsApp users, but how is it worth $19 billion? That's where the amount of users comes in.

Apparently WhatsApp has more than 450 million subscribers, and adds 1 million per month, and continues to grow. Facebook was not the first tech company to make an offer. According to news reports, Google was willing to throw down more than $19 billion. But for unreported reasons the acquisition didn't happen, and the app company went with Facebook's offer.

However, if people know the background of Facebook's start-up story, they understand Mark Zuckerberg has been able to make anything technical become a social phenomena. WhatsApp seems bound to become a mega global icon of popular apps, and that's exactly what all social media apps want, to get the word out, and fast.

Zuckerberg said, the app helps people have "fast and reliable" service for staying in touch with their family, friends and other contacts. Adding, this is worth the $19 billion investment because, it will compliment Facebook services.

Looks like the app holds all the right features. What are your thoughts?

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