WhatsApp is one of the most popular messaging apps in the world, with over 2 billion monthly active users as of February 2020. But who actually owns WhatsApp and how did it come to be so widely used? In this article, we will explore the history and ownership of WhatsApp to better understand who controls this incredibly influential communication platform.
The Founding of WhatsApp
WhatsApp Inc. was founded in 2009 by Brian Acton and Jan Koum, former employees of Yahoo. Based in Santa Clara, California, WhatsApp was created as a simple messaging app that would allow users to send text messages, photos, videos and voice messages over the internet.
At the time, there were already other messaging services like Skype, but WhatsApp differentiated itself in a few key ways:
– It was designed for smartphones specifically, making use of the mobile internet rather than traditional cellular networks for sending messages.
– Messages could be sent without paying additional charges beyond standard data fees.
– It supported common smartphones from BlackBerry, iPhone, Android and Nokia which were popular at the time.
– The app offered a simple interface that emphasized user experience.
– Users could identify each other through their existing phone numbers, avoiding the need to sign up for separate accounts.
This innovative approach allowed WhatsApp to gain traction very quickly after its release. The app was well-received, especially by young people looking for an easy and reliable way to communicate through their phones.
Acquisition by Facebook
Within a few years, WhatsApp’s user base had expanded rapidly, reaching over 400 million active users by 2013. Its popularity attracted attention from the major technology companies as a potential acquisition target.
In February 2014, Facebook announced its intent to acquire WhatsApp in a cash and stock deal valued at $19 billion – Facebook’s largest acquisition at the time. For context, Facebook had paid only $1 billion for Instagram in 2012. Clearly, Facebook was aggressively looking to expand its footprint in the mobile messaging space through WhatsApp.
The founders and employees of WhatsApp including Jan Koum and Brian Acton agreed to the acquisition and it was finalized later in 2014. However, Koum remained CEO of WhatsApp and the app continued to run independently under Facebook’s ownership.
Facebook’s huge bet on WhatsApp signified the strategic importance of mobile messaging apps. With Koum still leading the company, Facebook could benefit from WhatsApp’s growth while the messaging service could operate with autonomy.
Continued Growth Under Facebook
Following the acquisition, WhatsApp has grown bigger than ever under Facebook’s patronage. Some key milestones:
– 2016: WhatsApp introduces end-to-end encryption for all its users, enhancing privacy significantly.
– 2018: WhatsApp surpasses 1.5 billion monthly users, making it the most popular messaging app worldwide along with Facebook Messenger.
– 2020: WhatsApp launches Payment Services in Brazil. The feature expands person-to-person transactions through the app.
– 2021: WhatsApp adds multi-device capability allowing users to access chats across up to 4 linked devices.
User Statistics
| Year | Monthly Active Users |
| 2013 | 400 million |
| 2018 | 1.5 billion |
| 2020 | 2 billion |
As these milestones show, WhatsApp has grown tremendously under Facebook’s ownership to become the preeminent global messaging app today. Facebook’s resources have accelerated WhatsApp’s expansion worldwide and enabled new features while preserving WhatsApp’s core messaging functionality.
Leadership Changes
Despite WhatsApp’s success after the Facebook acquisition, there have been tensions behind the scenes.
Co-founder Jan Koum resigned from WhatsApp and Facebook’s board in April 2018 over disagreements about data privacy and the app’s business model. Brian Acton, the other co-founder, had left in 2017 for similar reasons.
In 2018, Chris Daniels took over as CEO of WhatsApp. Daniels was a veteran Facebook executive tasked with monetizing WhatsApp by introducing ads and businesses services, which Koum had long resisted.
But by 2020, Daniels was replaced by Will Cathcart as head of WhatsApp. Cathcart has continued pushing new features like payments while working towards integrating WhatsApp’s infrastructure with Facebook’s other properties.
Most recently in 2021, Adam Mosseri, head of Instagram, took on an expanded product role across Facebook’s messaging apps including WhatsApp.
WhatsApp Leadership Timeline
| 2009 | Founded by Brian Acton and Jan Koum |
| 2014 | Acquired by Facebook. Koum becomes CEO. |
| 2018 | Koum resigns. Chris Daniels replaces him as CEO. |
| 2020 | Will Cathcart becomes new CEO |
| 2021 | Adam Mosseri oversees messaging apps including WhatsApp |
While the founders have moved on, WhatsApp remains under the control of Facebook executives like Cathcart and Mosseri who aim to unify messaging across Facebook’s family of apps.
WhatsApp’s Business Model
A major point of contention between WhatsApp’s founders and Facebook was over how to monetize the messaging app.
Under Koum, WhatsApp ran an unconventional model that involved no ads or any other way to make money directly. The app charged a minimal annual subscription fee of $1 in some countries, but was otherwise free. Koum was uncompromising about ads, resisting Facebook’s push to monetize WhatsApp.
But Facebook was clearly eager to derive more value from its costly acquisition of WhatsApp. Since Daniels took over in 2018, the app has begun slowly opening up commercial opportunities:
– Allowing businesses to communicate through WhatsApp via Business Profiles and WhatsApp Business API.
– Experimenting with ways for businesses to showcase products through catalogs and shopping carts.
– Partnering with payment service providers in India and Brazil to launch WhatsApp Pay.
– Testing in-app advertisements, which are expected to roll out more fully in coming years.
Facebook is moving towards a model where businesses will pay to reach customers through WhatsApp and enable e-commerce transactions. WhatsApp Business accounts and payments will be crucial to monetizing these services. Consumer data will likely be accessed by Facebook to improve ad-targeting as well.
While not yet profitable, WhatsApp is seen as a long-term strategic bet for Facebook. With over 2 billion users, even modest monetization through business services and transactions could reap huge dividends.
Conclusion
To conclude, WhatsApp is currently owned and operated by Facebook after being acquired for $19 billion in 2014. The founders Jan Koum and Brian Acton have left, but Facebook has retained WhatsApp’s management under Will Cathcart while expanding its product integration.
WhatsApp has grown tremendously under Facebook to over 2 billion monthly users. But tensions have emerged over monetization and data privacy leading to the exits of its founders.
Facebook has begun slowly monetizing WhatsApp by enabling business services and building e-commerce tools. But the core user experience still remains ad-free. With massive reach, Facebook sees WhatsApp’s business potential as worth the wait, even if profits may still take years to realize.
Going forward, WhatsApp is likely to play a central role in Facebook’s overall messaging and commerce strategy while retaining some autonomy. But on issues like ads, data use, and encryption, Facebook will exert greater influence as the parent company.