$19 bn for dirty jokes and silly pictures. Too much?

Shashwat DCmoneycontrol.com

"Why are you still not there on WhatsApp?" is one of the most common queries I am asked at family functions that I so reluctantly attend. There's a tone of surprise, shock, disdain and piety, when the words are uttered, as if I am missing something very essential, say like a Gandhi cap at an AAP meeting. It so happens, that I am the only black sheep in the family, with almost all the members right from my aged dad-mom to my wife and my kid-sisters being active on the mobile messaging app. These WhatsApp-ers readily send each other selfies, recipes, children videos, movie reviews and all that over their smart phones. It has become to them, a desirable way to stay connected with each other in a discreet manner and through the phone, something that Facebook could never offer. After all, everything is for public consumption on Facebook, even when it is custom.

The biggest reason why WhatsApp has a legion of followers is not really due to its no media, no ad feature but, because of its privacy and intimacy. Considering that it was often a one-on-one or few-to-few communication, chatters have few inhibitions or fewer worries. They could easily share a "non-veg" joke, chuckle at it, send risqué pictures, share crazy videos and enjoy it all in the privacy of their handset. Since there's no "wall", there is nothing that needs be posted or can be viewed by anyone peeping on your timeline. The sheer privacy of the app made it all the more appealing. Silliness was no longer frowned upon, neither was raucous candor, people could utter anything; share anything, and there was no fear of being judged. In that manner Facebook was a tad elitist in comparison.

Little wonder, people were moving in droves to the app, and becoming addicted to it. Leaving a few old-guards (like yours truly) who still stuck it out with Facebook, where a certain social etiquette had evolved that looked down upon people posting images of anniversary outings at KFC, or buying a new Titan watch and going ga-ga over it. Let's face it, "What's on your mind?" is a very probing question that makes you think, unlike say a WhatsApp or a We-Chat that has no pretensions of mind, body or soul. In that manner, Facebook had become a sort of Shyam Benegal movie, while WhatsApp and the others were like those Salman Khan blockbusters. And we all know which ones work and which don't in India.

The honest fact is that within a couple of years, WhatsApp had raked in the numbers on a scale that it could actually pose a threat to Facebook in the days to come. With an active user base of 400 million a month of which 70% are active on a given day, thereby processing 27 billion messages, WhatsApp recently surpassed the entire global telecom SMS volume. And to think of it WhatsApp is not the only one, there's WeChat leading in China, Line in Japan, Viber, Snapchat, Kakao Talk, Telegram and what not. Little wonder the bastion of Facebook was under threat, and by acquiring the biggest player from the opposite league, Mark Zuckerberg, has changed the rules of game, yet again.

The good part for Facebook is that, the user-base of WhatsApp complements its own audience. Facebook is strong in the US, has a bit more serious audience. WhatsApp is younger, and has a strong presence in Europe and emerging markets like India and Brazil. In fact, it might very well be that Facebook bought out the messaging platform primarily to reach out to this segment, which had either not really taken up to Facebook like it had to others. It is a no brainer that it is in the growing markets where the next billions will be made, be it a Flappy Bird from Vietnam or a WeChat from China. Facebook is well aware of these challenges, and is gearing up for them. Nevertheless, $19 Billion is big, very big, money.

To give you a sense of proportion in Indian terms, assuming $1 is equal to Rs 62, Facebook will be doling out Rs. 24,800 crores ($4 Billion) in cash, some Rs. 74,400 ($12 Billion) crores in stocks and another Rs. 18,600 crores ($3 Billion) in registered stocks being set aside for the 55 odd WhatsApp employees. The deal has made the founders immensely rich, the worth of Jan Koum is now estimated to be Rs. 42,160 crores ($6.8 Billion) and Brian Acton is now worth Rs. 18,600 crores ($3 Billion). All this in a matter of few years.

Keeping in mind the mind boggling numbers involved (OMG! Only 14 listed Indian cos valued higher than WhatsApp), it could well turn out to be Zuckerberg's biggest gamble. Facebook stocks have already seen a downslide based on the reports. He has assured that the no-add, no-media app will stay that way, and function as is. Will it reassure the millions who preferred WhatsApp to Facebook. Or will it lead to a shift to other platforms that have been aggressively marketing themselves to woo the audiences, with funny stickers and video chats. You see, in the end most of the people on such platforms merely want the privacy for silly jokes and funny pictures. There’s no loyalty for a platform that can be easily downloaded for free from a playstore or a marketplace. Time will be the best judge on that. On a funny note, the joke doing the rounds on WhatsApp is, why did Zuckerberg need spend $19 Billion, he could have easily downloaded it for free. Coming back to the black sheep in my family. Well, next time someone poses the same WhatsApp query to me, I now will have an easy retort - "Oh, but we all are on Facebook, aren't we?" Thanks ever so much Zuckerberg, for offering me a $19 Billion retort.