A key executive at Whatsapp has been quick to deny rumours of an impending buyout by Internet giant Google
Rumours had emerged the search engine giant firm was in line to purchase the popular mobile app for a staggering £1bn.
It had been claimed Google was in talks with the creators of the smartphone based app for over a month, with Brian Acton and Jan Koum apparently holding out for a monster pay package – however, Whatsapp business development head, Neeraj Arora, told AllThingsD, this was not the case.
Whatsapp generates a reported income of more than $100m a year, with more than 18 billion messages sent on the app each day. The app is currently available in 100 countries and across more than 750 mobile networks.
Allowing users to send messages, pictures and even videos to friends for free once they have paid a nominal fee of around $1 a year, Whatsapp is a text communication service, similar to programmes such as Skype or the recently canned, Windows Messenger.
This is not the first time the popular smartphone app has been the subject of a big player buying them out. Previously, rumours emerged Facebook may have been looking to acquire Whatsapp, but it later transpired this was not to be the case.
On the Google play store alone the app has been downloaded more than a hundred million times, but, the challenge for Google if it was to acquire Whatsapp, would be whether it would actually be able to convince users to shift away from the current subscription system, to one which allows ads.
After all, a vast chunk of Google’s revenue relies on Internet marketing users placing ads on its services and ads would potentially allow the service to revert back to being free like it once was, using displayed ads to generate money instead.
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