Please ensure Javascript is enabled for purposes of website accessibility

Facebook Inc. Gets Edge in $100 Billion Market With WhatsApp

By Daniel Sparks – Feb 24, 2014 at 5:00PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

One app with 55 employees is turning a $100 billion market upside down -- and Facebook just stepped in on the opportunity.

It's hard to imagine any 55-employee business that's worth $19 billion -- no matter how disruptive it is. Yet that's the price -- including the value of common stock and restricted stock units -- that Facebook (META -0.74%) has agreed to pay for the five-year-old cross-platform messaging service, WhatsApp.

So where's the value in the deal? In the video below, Fool contributor Daniel Sparks suggests that investors look to two facts. First, WhatsApp's total messaging volume is already approaching the entire global telecom SMS volume. And just how valuable is this market? That prompts the second fact: according to The Verge, SMS is a $100 billion a year industry globally.

Check out the video below to hear more about how Facebook is positioning itself in this market with the acquisition of WhatsApp.

Daniel Sparks has no position in any stocks mentioned. The Motley Fool recommends Facebook. The Motley Fool owns shares of Facebook. We Fools may not 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.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Meta Platforms, Inc. Stock Quote
Meta Platforms, Inc.
META
$111.41 (-0.74%) $0.83

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
356%
 
S&P 500 Returns
118%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 11/26/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.