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IF FACEBOOK’S PURCHASE of WhatsApp for $16 billion has highlighted one thing, it’s that mobile messaging apps are big business.
Whether you agree with the valuation or not, the fact that such deals (and bids) are being made shows how important an area it is and how much the biggest web and digital companies want to control it.
Yet with the two biggest messaging apps purchased in the space of a week – Viber was purchased for $900 million last week – what does that mean for the other popular messaging apps out there?
The short answer for Facebook (and any other company that decides to invest in the area) is it gives them access to mobile users. WhatsApp has one of the fastest user growth rates for any app or service, and shows no signs of slowing down.
In the space of three years, it’s grown to 450 million monthly active users, and over 320 million daily active users, making it bigger than the likes of Twitter and other similar social apps. The majority of its users are younger, in the 15 – 30 year old age group, and savvier with mobile products.
Also, the sheer volume of messages sent through the app is another factor. WhatsApp sends 20 billion messages per day, double the amount Facebook does so there’s a clear indicator of communication there.
The massive price could have been down to other parties being interested. Google reportedly made an offer of $10 billion for the app as well, which could have forced Facebook into making a better deal.
Going by previous purchases, it’s unlikely there will be any changes to it for the next few months at least. Chances are the deal will work similarly to Instagram in that the service won’t change fundamentally – there’s no forced interaction with Facebook for example – but may see some tinkering, although not to the same level as Instagram.
The lack of talk about Instagram Direct, the private image messaging service set to challenge Snapchat, or Instagram Video in recent times, both of which were reactions to Snapchat and Vine respectively, suggests neither hadn’t the impact they intended. The chances of Facebook making the same mistake twice is much lower now that it has a better handle on mobile.
What happens with Messenger is another story. In the company’s earning call last month, Mark Zuckerberg spoke about the importance of groups and growth coming from that area. It’s likely the two will intersect as Messenger’s role, before today, changes from an app competing in the mobile messaging space into an extension of the main site.
(Image: Facebook/App Store)
While WhatsApp is the most popular messaging app out there, there are still a number of rivals who are growing at a similar pace. The five most notable examples in the field have their own approaches to the market with some like Viber already snapped up.
Viber
From: Cyprus
Monthly active users: 300 million
The messaging app was recently purchased five days ago by Japanese company Rakuten for $900 million. Rakuten, an eCommerce company which offers services like financing, shopping and online video, already had 200 million users and will find a lot of use for Viber’s 300 million members.
(Video: viberapp/YouTube)
Line
From: Japan/South Korea
Monthly active users: 350 million
Of all the services featured here, Line is probably the biggest threat as it’s more than just a messaging app. With a large network of connected apps, available on the App Store and Google Play, and digital content on it, it shares more similarities with Facebook than it does with WhatsApp.
Currently, its main audience is based in Asia, but it’s profitable – it made $338 million in revenue in 2013 – and is considering going public, where it could be valued at around $10 billion.
With the plan now to focus on Europe and Latin America and have 500 million users by the end of the year, chances are you will be hearing a lot more about it over the coming months.
(Video: giiks/YouTube)
WeChat
From: China
Monthly active users: 272 million
Another major player in Asia, WeChat’s main advantage is how dominant it is in China as its userbase tripled in the last year to 272 million.
The company that owns WeChat, Tencent, is currently investing in developing eCommerce on both WeChat and QQ, and much like Line, it wants to be an all-in-one service by offering shopping, gaming and banking among other things.
BlackBerry Messenger
From: Canada
Monthly active users: 80 million
While having an incredibly turbulent few years, the former smartphone giant has had good news in the form of its own messaging service. When it released its own messaging app on iOS and Android back in October, BlackBerry saw 40 million users register in the first two months and now has 80 million active users, half of which use non-Blackberry devices.
The news of WhatsApp being sold off saw the company’s value increase by 9 per cent, and if growth continues, it could become the company’s new foundation.
(Video: BlackBerry/YouTube)
Snapchat
From: US
Monthly active users: Unknown (estimated to be 30 million)
The self-destructing messaging site has been pretty quiet since it turned down a $3 billion offer from Facebook (and $4 billion from Google if you believe the rumours). It currently processes 400 million messages a day, and is planning to grow its team as it ramps up its service.
The company has never revealed how many monthly active users it has, but recent estimates say it has more than 30 million monthly active users. Apart from Viber, Snapchat is the app most likely to be purchased, but whether it will receive a similar bid to Facebook’s one a year or two down the line is anyone’s guess.
(Video: Snapchat/YouTube)
OK,
Review of an Bórd Pleanála and DCC voting on the minimum size for a habitable shoebox.
Could somebody tell Noonan that the country needs homes, not housing.
What’s worse Paul, the new updated shoeboxes they are going to build will cost circa €45k each.
Noonan doesn’t care Paul he has a gold caret pension no matter what….
@Paul – this is the new ‘stack and pack’ communist Agenda 21 compliant housing.
€45.5k per house? This won’t happen.
It’s not as simple as 45k each, the 500m will build a few, these get sold for a profit which in turn builds more. They can also use it to or leverage more money.
Yes, with current minimum standards and regulations; I’m very curious if this is achievable.
Leverage above 2 to 1 in a depressed economy is risky enough, the figures don’t add up. Can’t be throwing half a billion of our cash around willy nilly. Starting to look like a feeding frenzy around here.
homes not dog boxes.What sort of a house could be built for 45.000 euros. are there any of these fools proposing such dog boxes.With their big pensions and expenses.GET A GRIP.What about all the houses been held by NAMA give these to the county and city councils for houseing.Some have been idle for years.or is it all money and to hell with the homeless
I can only imagine the state of these when they’re finished, at 45k a piece I know I wouldn’t want to be living in one. That being said I suppose its better than a park bench if you have no other option/motivation.
Is the Irish government investment arm giving loans to irish developers! With some US cover fund of course, but is that the gist of it? Why can’t they borrow off the banks that we bailed out.
Irish banks have lent too much to Irish developers in general already. The money they have to lend can go to for small business and personal loads and home loans and some for some mortgages.
If you read the report produced by the ISIF you will see that the money is going mostly towards the construction of 3 and 4 bed units, which are the units that are badly needed to get families out shoe box apartments and flats all across the country. This is good news
Well said David. The usual suspects in here bemoaning and belittling any good news with nothing tangible to offer themselves except finger pointing. We need more homes in the right locations. The demand is there.
A link to the report would help! I just hope they’re 3 bed apartments rather than more suburban low rise sprawl into our agriculturally productive countryside.
We have way more 3 bed houses than we need in this country. They are under used is the problem. In order to free them up we need smaller properties as options for singles, couples without kids and property for the elderly.
Vast housing estates close to the major employment,schools etc. are occupied by 1 to 2 people. There should be incentives to get them in more suitable housing within these estates.
My mother lives in a 5 bed house on her own. She doesn’t want to leave the area and her neighbours are all in a similar situation.
I would cautiously welcome such news – but it comes way too late – initiatives like this were badly needed when the ordure first hit the airconditioning.
45k per house paying staff an ave wage of 19k per year is 36k per year on the staff. That leaves 9k left for materials or the build. I’m probably missing something here? The sale of these houses would need to be over 100k each to generate a return of 1.1b. I’m sure it will be more. The cost of the shoeboxes I meant.
have your say