Facebook has billions in the bank and according to a new report it may be preparing to spend some of that cash in an attempt to acquire WhatsApp, a popular mobile messaging application for smartphones. The social network is currently in talks with WhatsApp directors according to sources closely involved with the deal.
WhatsApp was founded in 2009 and allows users to instant message across multiple platforms. The instant messaging app serves tens of millions of daily active users in over 100 countries. The app covers over 750 mobile networks and delivers 10 billion messages every single day.
Why could Facebook be interested in acquiring the service? Their reach in international and emerging markets fits very well with the social network’s plans for expansion. Also, WhatsApp is a paid app with no advertising and the service has demonstrated value and could help add another revenue stream alongside Promoted Posts, mobile ads, etc.
When reaching out to Facebook about the potential acquisition a rep for the company responded “We don’t comment on rumors or speculation.” Founders of WhatsApp have yet to confirm nor deny the rumors.
There is currently no word on potential price and further details about the rumored deal. WhatsApp raised $8 million in 2011 at an unknown valuation. WhatsApp currently sells for $0.99 and is number two in the Apple App Store.
Facebook stock opened at $28 per share Monday morning which is almost $3 higher from where the company stood just one week earlier.