Facebook

Usually I don't care about social networks. But the recent purchase of Whatsapp from Facebook is something I can't grasp. I was explained by Marisol (who uses whatsapp against her will, because everyone she knows uses it) that users in latin america enjoy Whatsapp because it costs less than a text message assuming you are on the 4G network, due to Carlos Slim's horrible capitalist empire. OK, so for some, Whatsapp might be useful. This app has 450 000 000 monthly users. The first year is free, after that, it's 1US$ per year. So what users do is they deactivate their account and create a new one. Some 20 000 000 users actually pay the subscription fee.

So great, Facebook simply swallowed a super successful competitor. For 16 000 000 000$. Now OK, maybe Facebook decided the risk was too high to let them go, Whatsapp was the competitor with the highest chances of eventually being more popular than Facebook. But... Who cares if they only make 20 000 000$/year?

If I were Facebook, I would have tackled the problem this way: Create a new app (like messenger), with services at least as practical as Whatsapp. Why buy a simple name and software for 16 000 000 000$ when your company has the potential to crush them in an instant by just making something better. And it's not like it would be less popular than Whatsapp, we're talking about Facebook releasing a whole new product. And for the hell of it, make it free, just to make Whatsapp die and beg for being purchased before bankruptcy. Maybe buy it for 50 000 000.

To dominate a market, you must crush, not swallow. One word: Apple.

Facebook is ruled by young, hyped billionaires with nothing to loose. Maybe except 16 000 000 000$.