In February of this year, Facebook’s $19B acquisition of mobile messaging platformWhatsApp set a record for the largest software acquisition of all time. It set the value of WhatsApp at more than Sony Corporation.
Last week, the 5-year-old startup broke yet another impressive record — 64 BILLION messages processed in 24 hours. To give you some perspective, that is 10 times the amount sent in the entire US text message industry in one day. That is just insane!
I wanted to share this story with you to discuss 3 key observations:
1) 6 D’s Update – Disruptive and Demonetizing the wireless communications industry: WhatsApp is a $1-per-year service with 465M users. These users are sending 20B messages and receiving 44B messages every day. WhatsApp is both disrupting and demonetizing the entire wireless industry, and now the Facebook acquisition provides the infrastructure needed for WhatsApp to begin offering voice calls. So instead of people paying on average $80 per month, users only have to pay $1 per year for the same services. Wireless carriers, beware. This shift could disrupt more than $100B in annual wireless revenues.
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