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WhatsApp Hates Ads -- What's Up With That?

By Daniel Sparks – Feb 24, 2014 at 8:45PM

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Facebook's new member in its boardroom hates ads. Here's why.

In 2013, Facebook's (META 2.53%) revenue reached a record $7.87 billion. About 90% of this revenue came from advertising. The social network's reliance on advertising stands starkly against WhatsApp's policy on ads. WhatsApp, a cross-platform messaging service that Facebook recently announced it is acquiring for $19 billion including common shares and restricted stock units, has a "no ads ever policy." Even more, the CEO and co-founder Jan Koum, who was just appointed to Facebook's board of directors, has expressed some harsh views on advertising.

Can two companies with such a different view on how social platforms are monetized thrive together? Even more, can two leaders in the same boardroom with such opposing views on such an important pillar to Facebook's business work together?

Fool contributor Daniel Sparks discusses Koum's hatred of ads and how it may affect Facebook in more detail in the video below.

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.

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