WhatsApp, a messaging app, was just bought by Facebook for $16 billion. I thought Instagram being bought for “just” $1 billion was unbelievable, so this blows my mind.
My understanding is that it’s simply an instant messaging app that uses the data of the phone instead of the SMS. Lots of free apps do this already, such as Viber, Skype and several others.
WhatsApp is not free, although at $0.99 USD/year (for Android) I’d consider it all but free. I think it’s a one-time fee of $0.99 for iOS.
What makes WhatsApp worth 16 Billion to Facebook?