alt Hacker News> When Facebook bought WhatsApp for $19 billion in 2014, the messaging app had a clear focus. No ads, no games and no gimmicks.
This sort of analysis is very surface-level I think. My impression is WhatsApp offered that by running on VC money and had no plan to run an actual business. That's not a question of focus. It's an unsustainable, please monetise me later land grab.
Replies
How was it unsustainable? As far as I know they were simply competent. They charged $1/year, so had ~half a billion in revenue, right? They probably could've bumped that to $2-$5/year with similar uptake. And they ran it with ~500 servers and 50 employees 12 years ago, so could probably do the same with ~50 or fewer servers today.
It's called bait-and-switch - lure users in away from (possibly FOSS, e.g. Matrix) competitors, and when you have enough network effects that switching becomes hard, spring the trap.
Respectfully, clearly you aren't familiar with Jan and Brian's history of public statements.
Even for years after they were acquired by Meta, Jan refused to allow advertising and kept pushing the $1 dollar per user subscription fee. Sheryl nixed it b/c it was "not scalable."
VC's may have the mindset that the founders will eventually acquiesce to ads, but also they didn't really care b/c all they wanted was an exit, which they got.
The founders, however, were never interested in an ad business and hold that POV to this day.
https://techcrunch.com/2014/02/19/whatsapp-will-monetize-lat...
Zuck Says Ads Aren’t The Way To Monetize Messaging, WhatsApp Will Prioritize Growth Not Subscriptions
"Monetization was the big topic on today’s analyst call after Facebook announced it acquired WhatsApp for a jaw-dropping total of $19 billion. That’s $4 billion in cash and $12 billion in stock, and it reserved $3 billion in restricted stock units to retain the startup’s employees. But Facebook CEO Mark Zuckerberg, CFO David Ebersman, and WhatsApp CEO Jan Koum all said that won’t be a priority for the next few years. And when the time does come to monetize aggressively, it won’t be through ads"
Youtube was the same. Both are products that people really want to use.
Have you considered that you may be making the surface-level analysis? I paid $3 for Whatsapp in 2010 on the Blackberry app store. They had a staff of ~20 people handling messages across almost 200 countries.It became the defacto global messaging app because it was available on every single platform, not just the Apple/Google duopoly VCs cared about.