Eight years later, WhatsApp has only recovered 10% of what Facebook paid for it

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Facebook bought WhatsApp in 2014 because it knew how to see that when your social network turned into a pillar of salt, WhatsApp would dominate the world of instant messaging. identical movement to the one he did two years earlier with Instagram. Good eye.

Eight years after investing 22,000 million dollars in it (an amount higher than the amount initially transferred due to the revaluation of Facebook shares), It has only managed to get WhatsApp to bill a little more than 10% of what it cost. While with Instagram the profitability was early, and the growth of its income explosive, with WhatsApp everything is advancing at a much slower pace.

$800 million a year and rising

WhatsApp could be monetized by more or less reasonable means such as the sale of packs of stickers in a centralized store where the platform charges a commission, in the style of the App Store; by advanced features only for paid subscribers, or by purchase options in app Tinder-style.

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Nevertheless, WhatsApp is only monetized through users of WhatsApp for Business, its corporate product, to those who charge once they exceed 1,000 conversations. From that amount, it charges per message at a price that varies depending on blocks per million.

This has allowed it to achieve upward income, which was close to 800 million euros at the end of 2021…

…but with a cumulative amount still very far from the investment that Facebook made for it.

WhatsApp is far from its potential in terms of billing. It is the third social platform in the world by users only behind Facebook and YouTube, with 2,000 million monthly active users.

If we compare with businesses in other sectors, WhatsApp plays in the league of Groupon, Bumble, SquareSpace or ShakeShackcompanies that are either not global or have a very low penetration, but They achieve income very similar to the messaging application.

Its leadership in terms of unique users does not correspond to that of its income. Here is a relationship of the ditto between users and income (year 2021) of each of these large platforms. We exclude Facebook Messenger from the equation.

Eight years after Facebook bought WhatsApp, and although the income it generates has increased over time, it is still far from being profitable for the price paid, despite its enormous global success.

For comparison, Facebook paid $1 billion for Instagram, which equals your weekly billing. With revenues like those of 2021, WhatsApp would need 25 more years to recover what Facebook invested. Of course, no one doubts that this will come a little earlier.

Facebook bought WhatsApp in 2014 because it knew how to see that when your social network turned into a pillar…

Facebook bought WhatsApp in 2014 because it knew how to see that when your social network turned into a pillar…

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