Rumor: Facebook in Talks to Buy Popular Messaging App

Facebook reportedly targeting WhatsApp

   

Facebook (NASDAQ:FB) might be poised to acquire WhatsApp, a mobile messaging operator whose app is more or less a replacement for traditional SMS and has been incredibly popular with teens.

TechCrunch reports that people close to the matter say Facebook has been in talks with the company about a potential buyout.

WhatsApp delivers more than 10 billion messages per day across more than 100 countries. A key to those numbers is the program’s wide availability on more than 750 mobile networks. In addition to Apple’s (NASDAQ:AAPL) iOS and Google’s (NASDAQ:GOOG) Android — the app is No. 2 on Apple’s App Store and has had more than 100 million installs on Google Play — the app also is found on devices from Research In Motion (NASDAQ:RIMM) and Nokia (NYSE:NOK).

Better yet, WhatsApp is not another example of a money-losing technology — it been able to monetize its base with low-cost pay-as-you-go contracts.

The business model is likely to be very attractive to Facebook, which is searching for new sources of revenues.

Tom Taulli runs the InvestorPlace blog IPO Playbook, a site dedicated to the hottest news and rumors about initial public offerings. He is also the author of “How to Create the Next Facebook” and “High-Profit IPO Strategies: Finding Breakout IPOs for Investors and Traders.”  Follow him on Twitter at @ttaulli. As of this writing, he did not hold a position in any of the aforementioned securities.


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