After Facebook’s acquisition of WhatsApp, I thought this made an interesting exam question. I've compiled a PowerPoint with graphs and hyper-links and asked students to research the facts behind the purchase. The main reasons seem to be:
Whilst Facebook's share price fell and then recovered after the purchase, analyst Ian Maude stated "expensively buying every competitor does not feel like a long term strategy". Are Facebook, like Apple, losing their competitive edge?
- WhatsApp exponential growth was becoming a threat
- Facebook’s “determination to be the 'next' Facebook”!
- WhatsApp's comparative success in Europe
- Messaging companies becoming the social networks of choice for the
young - Google tried and failed
Whilst Facebook's share price fell and then recovered after the purchase, analyst Ian Maude stated "expensively buying every competitor does not feel like a long term strategy". Are Facebook, like Apple, losing their competitive edge?
facebook_whats_app.ppt |