Three reasons why Facebook could buy WhatsApp

BANGALORE, INDIA: Ambiguity over whether social media giant Facebook (FB) has evinced interest in buying out cross-platform mobile messaging app, WhatsApp, prevails currently, after a tech publication claimed that a deal was very much on the cards.

As the news spread like a wildfire across the media, both parties have squarely denied any speculation or rumors surrounding a potential buy-out.

However, specifics are generally never revealed, as is with any deal, until a final decision is made. It is entirely possible for either the media or the companies concerned to be speaking the truth.

All said and done, here is why it would really make sense for FB to eye WhatsApp - using which smartphone users can message their chat, e-mail, social and mobile contacts over the internet - for what it is worth.

Just three strong reasons:

1. Natural progression

Big-ticket acquistions are not new to Facebook. Early this year, it reportedly shelled out $1 billion to take over photo-sharing app Instagram.

Now, with the social network looking to widen its horizons, especially in the mobile market, WhatsApp could be the best buy. "The big thing is obviously going to be mobile. There are 5 billion people in the world, who have phones," Facebook CEO Mark Zuckerberg had stated recently.

Also, taking into consideration that 14 per cent of FB's revenues are generated through mobile advertisements, WhatsApp could easily give that extra push for FB to penetrate deeper into the mobile segment.

In Zuckerberg's words, "Mobile is crucial." So, a natural progression and diversification into m-space is highly lucrative.

2. Number power

If Facebook's one-billion-strong user base could form the third largest-populated country, so are the impressive numbers crunched by WhatsApp.

Launched in 2009, WhatsApp by last October claimed to have 100 million users from 100 countries on 750 mobile networks across the world. From handling 1 billion messages per day, it stated that it had touched the 10-billion mark this August.

These figures indicate that Facebook can almost double its reach among users, by expanding its operations and features.

3. Usability quotient

WhatsApp is available across all famous mobile platforms, including iOS, Android, BlackBerry, Symbian and Windows Phone. An important factor that makes it the numero uno app in 114 countries and among the top five in 145 countries.

Yet, it is not a free platform like Facebook. It costs about Rs. 55 ($.99) on the iTunes store from the second year onwards. Once users gets hooked to it, the amount charged would seem peanuts to them.

Moreover, if and when FB brings into its fold WhatsApp, the combo would pose an enormous threat to Apple's iMessage service, while keeping at bay Google, which still lacks a messaging service for mobiles.