Facebook to acquire WhatsApp
After endless rumors and speculation, Facebook has finally announced that they are acquiring the highly popular messaging app WhatsApp for $16 billion in cash and stock.
WhatsApp has over 450 million active users a month and over 70 percent of them are active daily. The app claims to be adding over a million new users every day. WhatsApp has experienced insane growth since it launched, with over 18 billion messages sent in 2013 alone, and 36 billion messages received.
Facebook is bringing on the co-founder and CEO of WhatsApp, Jan Koum, to its board of directors. The acquisition is a massively important buy for Facebook, not only as part of their projected growth, but to continue growing the data points they are snatching up across the web in an effort to monetize their massive amounts of data.
WhatsApp will be a standalone app
The acquisition requires approval from the federal government, and if rejected, Facebook will be contractually required to pay WhatsApp $1B in cash and another $1B in shares, so no matter what, it’s a pretty sweet day for WhatsApp.
WhatsApp will continue to operate independently and it is said that it will not become a free app as Facebook is. This move indicates Facebook’s strategy of expanding beyond their own ecosystem and owning property outside of their own site.
Koum said, “WhatsApp’s extremely high user engagement and rapid growth are driven by the simple, powerful and instantaneous messaging capabilities we provide. We’re excited and honored to partner with Mark and Facebook as we continue to bring our product to more people around the world.”
“WhatsApp is on a path to connect 1 billion people. The services that reach that milestone are all incredibly valuable,” said Mark Zuckerberg, Facebook founder and CEO. “I’ve known Jan for a long time and I’m excited to partner with him and his team to make the world more open and connected.”
Facebook said in a statement that the company “fosters an environment where independent-minded entrepreneurs can build companies, set their own direction and focus on growth while also benefiting from Facebook’s expertise, resources and scale. This approach is working well with Instagram, and WhatsApp will operate in this manner.”
Facebook releases Hotline as yet another Clubhouse competitor
(SOCIAL MEDIA) As yet another app emerges to try and take some of Clubhouse’s success, Facebook Hotline adds a slightly more formal video chat component to the game.
Facebook is at it again and launching its own version of another app. This time, the company has launched Hotline, which looks like a cross between Instagram Live and Clubhouse.
Facebook’s Hotline is the company’s attempt at competing with Clubhouse, the audio-based social media app, which was released on iOS in March 2020. Earlier this year, The New York Times reported Facebook had already begun working on building its own version of the app. Erik Hazzard, who joined Facebook in 2017 after the company acquired his tbh app, is leading the project.
The app was created by the New Product Experimentation (NPE) Team, Facebook’s experimental development division, and it’s already in beta testing online. To access it, you can use the web-based application through the platform’s website to join the waitlist and “Host a Show”. However, you will need to sign in using your Twitter account to do so.
Unlike Clubhouse, Hotline lets users also chat through video and not just audio alone. The product is more like a formal Q&A and recording platform. Its features allow people to live stream and hold Q&A sessions with their audiences similar to Instagram Live. And, audience members can ask questions by using text or audio.
Also, what makes Hotline a little more formal than Clubhouse is that it automatically records conversations. According to TechCrunch, hosts receive both a video and audio recording of the event. With a guaranteed recording feature, the Q&A sessions will stray away from the casual vibes of Clubhouse.
The first person to host a Q&A live stream on Hotline is real-estate investor Nick Huber, who is the type of “expert” Facebook is hoping to attract to its platform.
“With Hotline, we’re hoping to understand how interactive, live multimedia Q&As can help people learn from experts in areas like professional skills, just as it helps those experts build their businesses,” a Facebook spokesperson told TechCrunch. “New Product Experimentation has been testing multimedia products like CatchUp, Venue, Collab, and BARS, and we’re encouraged to see the formats continue to help people connect and build community,” the spokesperson added.
According to a Reuters article, the app doesn’t have any audience size limits, hosts can remove questions they don’t want to answer, and Facebook is moderating inappropriate content during its early days.
An app for mobile devices isn’t available yet, but if you want to check it out, you can visit Hotline’s website.
Brace yourselves: Facebook has re-opened political advertising space
(SOCIAL MEDIA) After a break due to misinformation in the past election, Facebook is once again allowing political advertising slots on their platform – with some caveats.
After a months-long ban on political ads due to misinformation and other inappropriate behavior following the election in November, Facebook is planning to resume providing space for political advertising.
Starting on Thursday, March 4th, advertisers were able to buy spots for ads that comprise politics, what Facebook categorizes as “social issues”, and other potentially charged topics previously prohibited by the social media platform.
The history of the ban is complicated, and its existence was predicated on a profound distrust between political parties and mainstream news. In the wake of the 2016 election and illicit advertising activity that muddied the proverbial waters, Facebook had what some would view as a clear moral obligation to prevent similar sediment from clouding future elections.
Facebook delivered on that obligation by removing political advertising from their platform prior to Election Day, a decision that would stand fast in the tumultuous months to follow. And, while Facebook did temporarily suspend the ban in Georgia during the senate proceedings, political advertisements nevertheless remained absent from the platform in large until last week.
The removal of the ban does have some accompanying caveats—namely the identification process. Unlike before, advertisers will have to go to great lengths to confirm their identities prior to launching ads. Those ads will most likely also need to come from domestic agencies given Facebook’s diligent removal of foreign and malicious campaigns in the prior years.
The moral debate regarding social media advertising—particularly on Facebook—is a deeply nuanced and divided one. Some argue that, by removing political advertising across the board, Facebook has simply limited access for “good actors” and cleared the way for illegitimate claims.
Facebook’s response to this is simply that they didn’t understand fully the role ads would play in the electoral process, and that allowing those ads back will allow them to learn more going forward.
Either way, political advertising spots are now open on Facebook, and the overall public perception seems controversial enough to warrant keeping an eye on the progression of this decision. It wouldn’t be entirely unexpected for Facebook to revoke access to these advertisements again—or limit further their range and scope—in the coming months and years.
Twitter to start charging users? Here’s what you need to know
(SOCIAL MEDIA) Social media is trending toward the subscription based model, especially as the pandemic pushes ad revenue down. What does this mean for Twitter users?
In an attempt to become less dependent on advertising, Twitter Inc. announced that it will be considering developing a subscription product, as well as other paid options. Here’s the scoop:
- The ideas for paid Twitter that are being tossed around include tipping creators, the ability to pay users you follow for exclusive content, charging for use of the TweetDeck, features like “undo send”, and profile customization options and more.
- While Twitter has thought about moving towards paid for years, the pandemic has pushed them to do it – plus activist investors want to see accelerated growth.
- The majority of Twitter’s revenue comes from targeted ads, though Twitter’s ad market is significantly smaller than Facebook and other competitors.
- The platform’s user base in the U.S. is its most valuable market, and that market is plateauing – essentially, Twitter can’t depend on new American users joining to make money anymore.
- The company tried user “tips” in the past with its live video service Periscope (RIP), which has now become a popular business model for other companies – and which we will most likely see again with paid Twitter.
- And yes, they will ALWAYS take a cut of any money being poured into the app, no matter who it’s intended for.
This announcement comes at a time where other social media platforms, such as TikTok and Clubhouse, are also moving towards paid options.
My hot take: Is it important – especially during a pandemic – to make sure that creators are receiving fair compensation for the content that we as users consume? Yes, 100%. Pay people for their work. And in the realm of social media, pictures, memes, and opinions are in fact work. Don’t get it twisted.
Does this shift also symbolize a deviation from the unpaid, egalitarian social media that we’ve all learned to use, consume, and love over the last decade? It sure does.
My irritation stems not from the fact that creators will probably see more return on their work in the future. Or on the principal of free social media for all. It stems from sheer greediness of the social media giants. Facebook, Twitter, and their counterparts are already filthy rich. Like, dumb rich. And guess what: Even though Twitter has been free so far, it’s creators and users alike that have been generating wealth for the company.
So why do they want even more now?
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