Facebook conference Call explains why acquisition WhatsApp

　　Wednesday, Facebook announces that it will buy growth at a price of 19 billion dollars at a total cost Fast Cross-platform mobile messaging company WhatsApp. The Facebook chief executive , Mark Zuckerberg ( Mark Zuckerberg), then attended the conference call to explain to analysts why the WhatsApp was purchased. Mr Zuckerberg said the reason for the WhatsApp was that he was considering the company's development for the next five to 10 years. The following share The minutes of this meeting, and I hope it will help.

In Zuckerberg's view, WhatsApp's earning power is not a problem, and the current Facebook has not yet considered the issue. Mr Zuckerberg's remarks suggest Facebook will not now consider advertising on WhatsApp.

Analysts asked Zuckerberg about WhatsApp revenue and revenue capacity during the conference call, but analysts said he was disappointed by the answers from Facebook executives. Current WhatsApp has its own source of revenue, but this is not what the analyst has to know

The reason Facebook buys WhatsApp at $19 billion trillion is that Facebook has a fancy for the future of smartphones. At the moment, the global smartphone user has about 1 billion people. Mr. Zuckerberg and WhatsApp co-founder and chief executive Jean-Koum agreed that global smartphone users would rise to 5 billion over the next 5-10 years. They think future news will remain the smartphone's first big activity .

That's why Facebook bought WhatsApp, the world's largest mobile messaging company. WhatsApp now has 450 million dollars and is still growing at a high rate.

The following is a summary of the conference call content:

Zuckerberg: "The combination of WhatsApp and Facebook will allow us to connect with more users around the world." Facebook is becoming a mobile company, with 945 million subscribers per month of mobile products. WhatsApp perfect for this vision, can enhance the service of two companies. ”

"WhatsApp's user involvement is strong and keeps growing at a high speed," Zuckerberg said. But WhatsApp is not getting the attention it deserves in the U.S. market. WhatsApp application is the only application that is currently more user-involved than Facebook apps. ”

Zuckerberg also mentioned the following points in the conference call:

WhatsApp adds more than 1 million users per day;

We believe that WhatsApp users will reach 1 billion people in the next five years;

WhatsApp already has a successful subscription model, and users use WhatsApp instead of SMS services;

Part of Facebook's mission is to provide the world with basic Internet services;

Have known Jane Qom for a long time;

For the past five years, the Qom team has made extraordinary achievements.

"I'm delighted with Facebook's acquisition of WhatsApp," Qom said in a conference call. It was an incredible moment for me and the entire company. I want to thank them. Qom says WhatsApp's goal is to create a platform that allows everyone to use different handsets. At present, the total number of messages sent to WhatsApp daily reached 19 billion, the total number of pictures sent to 16 million. Being acquired by Facebook allows WhatsApp to reach more people and provide more functionality to users.

"I have known Zuckerberg for many years and personally adore him," Qom said. Facebook is a model for our company. We are delighted that our entire team is able to join Facebook. ”

David Ebersman, Facebook's chief financial officer, said Facebook would pay a 19 billion-dollar takeover of WhatsApp over the next 4 years, a deal that had been approved by WhatsApp shareholders, David Ibbosman. More than 450 million users are currently using WhatsApp each month, and 70% of these users are using WhatsApp every day.

The following is a conference call question and Answer section:

Q: How is this transaction achieved?

Zuckerberg: I've known Qom for years. 11 days ago, last Sunday night, I suggested how the combination could indeed connect the rest of the world. He considered it. A week later, he said he was interested in the deal. The following week, we determined the purchase price and the terms of the transaction. We decided to move forward on this.

We will operate independently, as we did when we acquired Instagram. With acquisitions, WhatsApp can further increase its size. Kevin Systrom, founder of Systrom, has gained enormous value by using Facebook's architecture. WhatsApp results will also be used in this model.

Q: About WhatsApp advertising and income-generation issues.

Zuckerberg: Our strategy is very clear, and in the next few years WhatsApp will focus on growing and connecting everyone in the world. When users reach 2 billion to 3 billion, there will be a number of revenue-generating patterns. At present, we will focus on the growth of products. WhatsApp will operate independently, so there is no need to consider income-generating issues. I personally believe that advertising is not the right way to let messaging applications achieve revenue generation.

Qom: WhatsApp currently does not offer advertising services. We already have a stable income-generating model. Income generation is not our primary concern. Zuckerberg is thinking about the development of the next 5-10 years, starting now. By 2020 or 2025, 5 billion people worldwide will have a smartphone. At that time, we might get 5 billion paid subscribers.

Q: How many overlapping users do WhatsApp and Facebook have?

Ibbosman: We really don't know about overlapping users. The users of two companies do overlap, but we can't calculate the exact number.

Q: Can Facebook use WhatsApp to get development?

Zuckerberg: WhatsApp, a former Yahoo employee Blaine Akton Acton and Qom, has only 50 employees, but in just 5 years they have developed products that are used by nearly 500 million users. No one can do that. I have a common strategic idea with Qom.

Q: Does WhatsApp have any other product extensions? In which countries does WhatsApp currently perform better than Messenger?

Qom: We are currently focused on making our products faster and better, and the message speed is now our focus. You will see the evolution of our products and new features will be introduced in the next 12 months.

Zuckerberg: Messenger evolved from Facebook Chat, many of the messages are not instant messages, more like informal emails, and will be answered later. WhatsApp is more like a mobile phone message, an Instant messaging tool. The world needs both of these services, and we will continue to invest in two services.

Q: Why buy WhatsApp at a price of 19 billion dollars? Where does the growth of WhatsApp come from?

Ibbosman: We looked at the size of other networks. The services they provide are really useful. Instant Messaging is now the first big event on smartphones. There are now 1 billion smartphone users worldwide, and the future will grow to 5 billion. So even though messaging services are valuable services, people are willing to pay for the service.

Q: Will regulators approve the deal?

Ibbosman: Not expected to encounter any problems.

Q: What kind of competitive landscape is the instant messaging market facing today?

Zuckerberg: The current market for instant messaging is unusually competitive. WhatsApp is currently the market leader, although in some markets, other instant messaging services market share is higher, but in most countries, WhatsApp is the market leader. WhatsApp focuses on the speed and reliability of message delivery, which is more than the speed of mobile text messaging, which is their technical advantage. The WhatsApp team is obsessed with the perfect messaging service, which is the right strategy. Over time, users will want to pay to use the best Instant Messaging service.