Facebook has acquired WhatsApp for a total value of $19 BILLION. Wow. That’s more than the GDP of Argentina, folks. The $19 billion is split up into three parts:
– $4 billion in cash
– $12 billion in Facebook shares
– $3 billion in restricted stock units for WhatsApp employees, to be distributed over four years
Um, divide that last one by 50. Yeah, WhatsApp has 50 employees. So there are a lot of millionaires today!
WhatsApp currently has 450 million users, with around 1 million new users per day. 70% are active on a daily basis. WhatsApp’s message volume is supposedly close to the entire global volume of SMS messages. Facebook is essentially paying about $42 per user.
I’ve been using WhatsApp for almost a year now (as I get close to my $1 bill being due), but it’s really NOT about US users. It’s more valuable to Facebook because of its global users. Most US smartphone consumers are now used to unlimited texting on their plans… this isn’t the norm outside the US, however, which explains the widespread global adoption of WhatsApp. In fact, WhatsApp is the norm for SMS users outside the US. And the app sure beats the plain-jane functionality of most default SMS apps provided by the phone manufacturers and network carriers.
Facebook is playing defense here. They perceive WhatsApp as a cannibal. We all know it’s better to hunt than be hunted. After failing to snap up SnapChat for a paltry $3 billion, they must’ve felt like an aggressive act was needed. There’s more detail about the reaosns behind Facebook’s strategy here.
While trying to feverishly watch season 2 of House of Cards, I’ve noticed a few spinning rainbows via my AppleTV. What’s up? I tend to blame my Internet connection, but in reality it seems like there’s some nefarious “auto slowdown” occurring. It seems like Netflix is having a conflict with Verizon and other broadband providers over how much content should be carried without additional fees. Netflix complains that they’ve encountered a 14% slowdown in average speeds. The Wall Street Journal is reporting on the conflict between the two titans, but they’re telling us that Google, Microsoft, and Facebook, have already begun paying broadband providers for smoother access to their networks, which leaves Netflix kind of flapping in the wind complaining about tiered access.
The war around the idea of “net neutrality” is heating up as consumers move away from traditional TV and focus more on “binge watching” and a la carte watching via Netflix, Hulu, Google Play, iTunes and other streaming and/or subscription services. Just last month, a court ruled in favor of Verizon’s suit to block the Federal Communications Commission’s net neutrality rules, which has spurred chaos among the providers and content creators as more people consume more high-definition video. To add fire to the furnace, Netflix is more than likely very interested in the upcoming federal review of Comcast’s acquisition of Time Warner Cable, and may push for new requirements on traffic-swapping deals. As we move forward into the unknown waters of “tiered Internet access” it’s going to be more and more about who pays what: the content creators and/or their customers.
It seems like streaming services are all the rage lately. Beats just released their app (known mostly for headphones, the company bought MOG, and re-branded it) which gives you unlimited downloads and access across 10 devices for $14.99 a month. Spotify has now removed the limit to the number of songs subscribers on the free plan can access each month, as well. So the services are upping the ante by trying feverishly to differentiate themselves. Beats is adding a human element by bringing curators to the service instead of a computer algorithm to help you discover songs/artists you like. Spotify is stressing its social utilities and focusing on playlists based on your mood.
To carve out market share, the streaming services have offered subscriptions at a ridiculously low price: $9.99 a month on average, or even better discounts if you buy a year’s worth in advance. The paradigm shift for the general public has been moving from “owning” songs to “renting” them. While the streaming services seem to be taking hold, there’s new research that shows they can never be profitable. According to the report, the number of streaming users will balloon to 1.7 billion by 2017, up from 767 million in 2013. Paid subscribers will leap to 125 million, up from 36 million currently. It seems like the labels are the culprits: taking 70% of the profits for themselves in royalties. On top of that, the freemium model that Spotify has adopted is convincing consumers that music is a commodity, and not really worth paying for. And, of course, there’s the controversy with what the artists are actually being paid.
As the services evolve, they’re going to have to figure out a revenue model that allows for scalability. And consumers, at some point, are going to have to pay up.
It’s estimated that by 2016, connected mobile devices will account for 61% of all Internet traffic. Of that traffic, a significant amount is generated from the mobile workforce, using their own personal devices. Now, companies have an “Internet of Employees” and the days of IT groups sanctioning the devices allowed on the network is quickly fading. Instead, CIOs are facing a broad, diverse array of personal devices — 95% of global organizations now allow employee-owned smartphones and tablets in the workplace. However, that doesn’t diminish the need for CIOs and IT groups to focus on what some are calling the “coming mobile mayhem” in regards to device management, data security and network availability.
Companies now must start developing plans to support the “Internet of Employees” and create policies spanning security and network availability as more employees blend their personal activities with their work activities on their devices (many employees will use their smartphone for email, while streaming Spotify at the same time).
Companies may want to consider offering employees provisioned devices of their choice (similar to Yahoo! offering employees free Windows, iOS or Android devices). With centralized mobile management, it’s easier to build the appropriate infrastructure to support the Internet of Employees.
Over 60% of lost or stolen smartphones are believed to contain sensitive and/or confidential company information. It’s incumbent for organizations to devise some type of security policy as it applies to personal devices in the workplace.
Some studies seem to indicate that employees are more productive when allowed to use their own personal devices in the workplace. Companies have to balance the “mobile mayhem” of thousands of employee-owned devices on their networks vs. the inherent need for security as it applies to company IP and the integrity of their network operations.
Unhappy with your Lookback video? Too many photos of your ex? Of other people’s exes? Now you can edit your video … sort of.
It’s a start at least. Facebook lets you choose from a pre-selected group of photos and status updates for each section of the video. I still didn’t get the photos I really wanted in there, but I got rid of the ones I didn’t want. That’s good enough.
To edit your movie:
- Go to Facebook.com/Lookback.
- Click Edit in the top right.
- Scroll down and select from the pre-selected items. I didn’t realize that you can pick from more than one page of items at first, but it’s still pretty restrained.
- When you’re done, you can view your video.
- Click Update. Your video will update, and you can update your status with it.
The catch? It updates the original post you made with your video and does not make a new one.
For a laugh, you can also view what a Facebook movie would look like if it told the real truth.