Rumor has it that Google is gearing up to acquire the popular cross-platform messaging app WhatsApp for a whopping $1 billion.
According to a Digital Trends report, reliable "inside sources" have let on that Google and WhatsApp are in the middle of negotiating the deal and talks began nearly four to five weeks ago. However, WhatsApp is playing hard to get and is rallying for a higher price. Per the sources, the acquisition price is near the $1 billion mark and could inflate if WhatsApp manages to arm twist Google into giving in.
At this juncture, the authenticity of the rumor is questionable; however, in the event that the deal does go through, it would mark a first, as an application acquired for more than a billion dollars.
"Messaging app WhatsApp is in the negotiating phase over prices with Google in what could be Google's next billion dollar acquisition, according to an inside source. While the deal started four or five weeks ago, we've been told that WhatsApp is 'playing hardball' and jockeying for a higher acquisition price, which currently is 'close to' $1 billion right now," reports Digital Trends.
Speculations are also rife that Google will tie up its messaging services under one platform. The alleged unified messaging system from Google is dubbed "Babble" or "Babel."
The move to take Whatsapp on board makes perfect business sense for Google. The app already has a loyal consumer base and Google would not need to waste precious time slaving over a similar app.
Moreover, if the WhatsApp acquisition comes through, Google need not worry about monetization as WhatsApp is the top paid app in nearly 100 countries. At $0.99 (yearly subscription fee), the app is both affordable and ad-free. This fee is applicable for iOS users, whereas Android ones get to use the service free for a year.
The app also makes money by partnering with carriers internationally and generates an annual revenue of $100 million. Big bucks for a messaging app that does little else!
If Google were to acquire WhatsApp, it's possible that Windows Phone users could suffer as the app may be pulled off due to the constant differences between Microsoft and Google. Alternately, Google could look to give precedence to Android over iOS and Windows Phone, or may be even make WhatsApp Android excusive!
It is not yet known by when the acquisition will come through. We'll just have to wait and see what Google has up its sleeve.
