Google (GOOG) Wants to Take Down WhatsApp

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WhatsApp is a hugely popular messaging app that Facebook (FB) thought enough to buy out for a whopping $19 billion.

google goog stock whatsappAnd according to a report in the Economic Times, Google (GOOG) wants to take it down.

The details are sketchy, but it appears Google is looking to launch a test of the app in India sometime in 2015. Should it get any traction, it could provide a much-needed spark for GOOG stock, which is underperforming the market with a weak 3% return in 2014.

Remember: Google tried to buy WhatsApp, understanding that messaging makes for a killer app for mobile and often generates a tremendous amount of user activity. This in turn provides lucrative opportunities, such as with social games, advertising and even e-commerce. And users have proven that they’ll pay for messaging, especially in countries with high SMS rates.

However, despite being willing to pay even more than Facebook, Google CEO Larry Page was rebuffed. The founders weren’t happy about Page’s intentions — he seemingly only wanted to keep Facebook from picking up WhatsApp. In the end, they thought Mark Zuckerberg would provide more independence to focus on innovation, and believed Facebook to be a better cultural fit. This dealt a rare loss to Page, who has a pretty good track record of courting founders (see: Android, YouTube, Nest).

It appears that Google’s app will be free, and that you won’t have to register with a Google account. Also, the fact that the app will be available on the Android OS — the world’s dominant mobile operating system — should help its early spread.

Testing in India is no coincidence; the country has more than 800 million mobile users, but has no clear-cut dominant mobile messaging player — yet.

Still, even if Google can get a foothold in India, it could prove much tougher to crack other important markets. Tencent (TCEHY) has a strong lock on China. WhatsApp is dominant in Europe. Line is the leader in Japan. And Viber is making big inroads in the Middle East.

Besides, Google has a spotty track record with social apps. After all, its G+ social network has been a disappointment, and the company appears to be slowly giving up on it, recently killing the required tie-in between Gmail account holders and G+ accounts.

Still, Google doesn’t have any choice but to try to make its own app.

There are only a handful of messaging mega-operators, and those are either owned by other large companies, or they’re well-funded enough to stay independent. Meanwhile, Facebook has been ramping up its efforts to outrun Google in other key businesses, via its Atlas ad network and videos.

There’s no wonder Facebook shares have surged while GOOG stock has napped.

Maybe Google’s finally going on the offensive.

Tom Taulli runs the InvestorPlace blog IPO Playbook. He is also the author of High-Profit IPO StrategiesAll About Commodities and All About Short Selling. Follow him on Twitter at @ttaulli. As of this writing, he did not hold a position in any of the aforementioned securities.

Tom Taulli is the author of various books. They include Artificial Intelligence Basics and the Robotic Process Automation Handbook. His upcoming book is called Generative AI: How ChatGPT and other AI Tools Will Revolutionize Business.


Article printed from InvestorPlace Media, https://investorplace.com/2014/10/whatsapp-goog-stock/.

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