It would appear the Google is in negotiations with WhatsApp the messaging app, reports are circulating that the two companies have been talking about the deal for the past couple of months.
Although it looks like Whatsapp are holding out for a better deal, but then who wouldn’t Google as we know have the cash but, that doesn’t mean they are have an open wallet. This year has been dominating by the messaging app-meets social network market.
Even Google Product Manager Nikhyl Singhal confessed to GigaOM in June of last year that “We have done an incredibly poor job of servicing our users here.” Messaging is a huge, gaping hole in Google’s mobile strategy.
Communication services are the pillar to any connected device; knowing this, if Google wants to be taken seriously on mobile, it’ll need a standout like WhatsApp to take under its wing, and it needs to work fast.
By all regards, the acquisition is a no-brainer. Apps like LINE, which in record time has gone from zero to 130 million users in just under two years. Even new entrant MessageMe has rocketed from zero to one million users in just 12 days, and GroupMe which is now part of the Skype family is building up a sizable following.
Google can’t afford the time to re-brand and rebuild a competitive messaging app at the risk of entering the game too late – or, it needs to be able to work off the platform WhatsApp has already established and use this technology.
Also justifying the rumors is the fact that Google has approached WhatsApp before (as has Facebook). Look at it this way: WhatsApp is consistently the number one paid app in more than 100 countries with an enviable user base size spread throughout more than 100 countries and 750 mobile networks.
But more importantly, WhatsApp has a proven money spinning scheme. Its yearly but nominal $0.99 subscription fee keeps the service ad-free.