Google Rumored to Be Buying Whatsapp for $1B

by Christopher Freeburn | April 8, 2013 10:07 am

google sign close up 630 300x225 Google Rumored to Be Buying Whatsapp for $1B[1]Sources tell Digital Trends that Google (NASDAQ:GOOG[2]) is negotiating the purchase[3] of messaging app WhatsApp.

Talks between the Internet search giant and the start-up have been on going for at least a month. WhatsApp’s management is said to be pushing for an acquisition price of almost $1 billion.

WhatsApp is said to have annual revenue of about $100 million. The app, which operates in 100 countries, processed 18 billion messages on New Year’s Eve alone. Users pay 99 cents a year to use the service.

The deal with give Google a flashy messaging service, filling a missing link it the company’s mobile communications platform, without having to develop and brand its own service.

Last year, Google paid $1 billion to purchase[4] photo-sharing app Instagram.

Shares of Google fell more than 1% in Monday morning trading.

Endnotes:
  1. [Image]: http://investorplace.com/wp-content/uploads/2012/10/google-sign-close-up-630.jpg
  2. GOOG: http://studio-5.financialcontent.com/investplace/quote?Symbol=GOOG
  3. negotiating the purchase: http://www.digitaltrends.com/social-media/google-acquiring-whatsapp/
  4. paid $1 billion to purchase: http://investorplace.com/ipo-playbook/facebook-shells-out-1-billion-for-instagram/

Source URL: http://investorplace.com/2013/04/google-rumored-to-be-buying-whatsapp-for-1b/
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