Could Facebook Adopt a New Revenue Model?

Facebook's new board of directors member hates ads. What does this mean for Facebook?

Feb 24, 2014 at 4:25PM

When Facebook (NASDAQ:FB) announced last week it was acquiring WhatsApp for $19 billion, it also appointed the company's CEO of just 55 employees to the social network's board of directors. Will WhatsApp co-founder and CEO Jan Koum bring a convincing case for new approaches to revenue? After all, WhatsApp has despised ads and instead opted for a simple $1 per year subscription model.

Given that Facebook is already one of digital advertising's biggest names, the company's main platform is not likely to ditch ads. But as the company is bringing a stream of new apps to market with the new Facebook Creative Labs initiative, it's possible Koum's subscription model could see the light of day in future Facebook projects.

Fool contributor Daniel Sparks discusses the possibility of Facebook adopting a WhatsApp-like subscription model in the video below.

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4 in 5 Americans Are Ignoring Buffett's Warning

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Jun 12, 2015 at 5:01PM

Admitting fear is difficult.

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KPMG advises we're "on the cusp of revolutionary change" coming much "sooner than you think."

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David Hanson owns shares of Berkshire Hathaway and American Express. The Motley Fool recommends and owns shares of Berkshire Hathaway, Google, and Coca-Cola.We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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