How will Facebook use WhatsApp after acquiring it?
Facebook says it plans Whatsapp to be at the center of communication. It would enable both communication within groups of people along with enabling brands
to communicate with their fans directly (replacing email advertising).
Now, the bigger question of why Facebook wants Whatsapp. Because, Whatsapp is disrupting the core value of Facebook (enabling people to stay in touch with their friends and family).
The problem with Facebook is that it is not that popular among the present teenagers and kids. Snapchat and Whatsapp are getting a bigger mind share in this market. Even if Facebook has the lion’s share of the older people’s market, it is the teenagers who define what is cool. For them, Facebook is our dad’s IBM and Microsoft.
Once you are not being perceived as cool, even the older audience starts moving away and start following their kids, nephews, nieces and students to these newer networks. If you don’t stay cool enough in the tech market, you are dead.
For Facebook, it is about long term survival in a market where people can change their minds quickly. With the mobile devices enabling people to own more and more of their own networks, the big moat of network effects doesn’t look as invincible. I would not be surprised if one of the biggies lops up Snapchat for such an insane sum.