Google In Talks To Buy WhatsApp For $1bn – Report

Google is reportedly in talks with WhatsApp over a possible takeover deal that could see the instant messaging company acquired for close to $1 billion (£653m).

DigitalTrends says discussions have been taking place over the last four to five weeks and that WhatsApp was “playing hardball” to try to secure a higher price.

Google and Facebook have both been previously linked with a takeover, but Google’s interest is believed to be much stronger this time round.

Google WhatsApp takeover

The suggestion is that Google views messaging as a huge hole in its mobile strategy and believes a major acquisition would plug that gap. It is believed to be working on on a product Google Babel but is unsure whether it has the time to create and market a competing service.

Facebook has made similar moves with its own messaging app, but WhatsApp is the number one paid app on iTunes and can count on a user base spread across 100 countries and 750 mobile networks.

The app costs a nominal 69p, which is enough to keep it ad-free, while partnerships with international telcos have contributed a reported annual revenue stream of $100 million.

WhatsApp carried a record 18 billion messages on New Years’ Eve 2012 and is believed to have had a crucial role in the decreasing use of SMS messages. It is believed that the increased use of social messaging applications cost mobile operators $13.9 billion (£8.8bn) in lost SMS revenues in 2011.

Google had not responded to requests for comment at the time of publication.

Facebook bought Instagram last year for a similar amount, reportedly shelling out £630 million for the photo sharing app.

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