Thursday, February 20, 2014

Facebook's purchase of Whatsapp

In my experience Facebook users are nearly saturated. I have only added one friend in the last few months and joined in 2007. So their market growth is really only new kids accessing computers or 3rd world countries. Well Fiji is a third world country and I am connected to nearly all my Family members in Fiji. Where the Australian Friends and family seem to post a lot less now.

I have a fourteen and sixteen year old son and they don't know what Whatsapp is and they spend a lot time on their Samsung s2. The youngest uses Snapchat as majority of his friends are using it. 

After some reading article from November last year it stated that Whatsapp had around 400 million users and with Snapchat was the biggest competitor to Facebook.  Amazing the speed of change by end of Christmas break new users were going to Snapchat at a rate of 40/1 over Whatsapp.

I understand that Facebook is in trouble getting new users especially the younger ones as my kids are always complaining about Grandma posting comments on their Facebook posts.
The biggest issue that Facebook has now is its branding as its lost it cool and rebellious factor for new kids.  

This is just part of the internet cycle and what must go up will come down as smartphone apps are taking away a lot of what Facebook users would spend their time on Facebook. An example is the  Farmville of today would just be a ITunes or Google Play app.

My main problem with Facebook is that they are picking the wrong company and even if they did pick Snapchat, I am sure that once under Facebook branding it will lose users and as a new app that takes advantage of whatever new technology of the day is will overtake it. 

I see this move as like Newscorp taking over MySpace when all majority of their users have already moved to Facebook. But MySpace touting its number of users.

My opinion is that Facebook should make it easier for kids on Facebook to silo off their older family members like myself and spend the 19 billion on real assets that wont be overtaken in a few years,


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