Google Rumored to Be Buying Whatsapp for $1B

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

google sign close up 630[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.

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