Earlier Facebook announced their plans to acquire WhatsApp, one of the world’s most popular instant messenger apps. With Facebook’s acquisition of WhatsApp, Facebook has entered into direct competition with the like of other instant messenger apps, such as Tango, for example. In an email sent to us, Eric Setton, the CTO and co-founder has decided to weigh in on the issue. According to Setton, he feels that Facebook might have gotten themselves a good deal. “With this move, Facebook acquired a messaging service that has more active users than Twitter at half the price.”
However Setton wonders how Facebook will be able to earn money from WhatsApp. After all, WhatsApp is based on a subscription service, while Facebook makes their money from ads. In fact with Instagram, Facebook has attempted to introduce ads as part of Instagram’s feed, but we’re sure that WhatsApp users will definitely not be pleased if Facebook attempted to introduce ads in the service as well. “The company is especially valuable to Facebook since mobile advertising is on the rise and it will be a good match to Whatsapp’s high engagement levels. Tango knows this first hand as we successfully introduced native ads last year. It’ll be interesting to see how WhatsApp’s “no ads ever” approach will play out now.” That is a good question actually, will WhatsApp’s subscription service generate enough revenue to appease Facebook? Or does the social networking giant have something else planned?