Facebook recently bought WhatsApp. The price stands for $19 billion. After Facebook acquired Instagram, it bought another rival to remove all obstacles to be at No.1. But the price it paid is considered too high. It shows Facebook purchase of whats app was quite in panic condition and not a planned and well thought process.
Instagram and WhatsApp were the two main rivals which had some potential to pip Facebook. Instagram, the apps which provides the facility of applying filters to the pics and are a true boon to the new photographer or the people who don’t know photography was bought by Facebook in 2012. The cost Facebook paid to buy Instagram was $1 billion.
Now, WhatsApp is the latest acquisition of Facebook. The apps which were focused photo sharing; file sharing etc has the option of connecting to friends and thus had all the features which Facebook do posses. It is the report which says that people preferred to have WhatsApp over Facebook app. The mobile users highly prefer WhatsApp over Facebook apps. Thus it raised an alarm in facebook and they panicky bought it.
Thus Facebook gave away $20 billion dollar to acquire both of its rivals. Now they are in total control of mobile. But is it justified paying such a huge amount to buy them. Why could Facebook not have developed a rival app to counter those? Only Facebook knows. But what have they done now is that with the buying of these apps they have completely removed rivals from the field and now they are in full control and won the race.