Facebook + WhatsApp; Good Deal, Bad Move

Someone might as well scream at the top of his voice, “What is wrong with Zuckerberg?” Facebook has struck a deal with WhatsApp in a move aimed at increasing competitive edge in a flooded market. Facebook shares went down by more than one percent following the announcement. The deal is not bad for WhatsApp, a company with around 55 employees, as the developer’s portfolio will subsume some Facebook shares and his bank statement will contain more digits than before. The question is not whether or not Facebook is reaping yet another mobile app developer off his innovative ideas. The main issue is whether Zuckerberg’s growth strategy is sustainable compared to other social sites such as Google, LinkedIn, and Twitter.

You could say that Mark Zuckerberg has slept on his laurels and has forgotten what it means to be innovative. When a company buys out its rivals, it only postpones the need to launch an innovative move that will match with the fast-paced technological advancements and the ever-increasing expectations of the consumers. This implies that buying out WhatsApp is not a solution for Facebook’s problems in itself. It is not contestable that Facebook needs to attract more users and advertisers, but buying out other people’s ideas is not the best way to go about it. Zuckerberg is stealing from consumers. Yes, stealing, because WhatsApp, in a few days, will lose its main appeal, absence of adverts. But for now we just have to hope that the next Facebook is expanding it won’t buy out LinkedIn or Google+ (if that is even possible).



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