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After Instagram, will Facebook buy Whatsapp?

The tech world is alight with rumours concerning a possible acquisition of WhatsApp by Facebook.

It’s too early to tell if there are any genuine substance to the rumours, but there are several reasons to see how this is a feasible move by the social media giant.

Facebook has long talked about being a mobile first company and the need to monetise the mobile sphere. The pressure on Facebook since the IPO debacle only increases the need for the network to start making inroads into mobile and producing a revenue generating service for nervous shareholders.

The acquisition of Whatsapp, following up from the Instagram purchase, would be another logical step in their strategy.

Instagram now has 11 million users - compared to less than a million when Facebook bought it in the early half of 2012 - suggesting that the initial skepticism in the industry towards the buyout was misplaced and Facebook had their eye on the ball.

There may be plenty of other younger and cheaper options in the messaging app world than Whatsapp but, similar to Instagram, Facebook would be buying into a colossal and thriving brand.

Back in August WhatAspp released figures claiming it was handling 10 billion message a day. A stunning rise from an already impressive one billion messages less than a year earlier.

If Facebook believe Whatsapp, like Instagram, has still not peaked the logic behind a possible move becomes clearer. Providing Whatsapp has the ability to deliver new and interesting services to help retain and attract new users, it simply comes down to valuations.

The question then: how much is Facebook willing to pay?

Andreas Bernström is the CEO of Sweden-based Rebtel, the world’s largest independent VoIP company by revenue. He has overall responsibility for company strategy and direction. Andreas works to ensure that the business runs smoothly now and in the future.