Facebook's Big Goal for WhatsApp: 1B Users

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Feb. 20 (Bloomberg) -- Facebook agreed to purchase mobile-messaging startup WhatsApp for as much as $19 billion in cash and stock, the biggest Internet acquisition in more than a decade. Jon Erlichman reports on Bloomberg Television's "In The Loop." (Source: Bloomberg)

Communications, that is what facebook wants to dominate.

I like to throw out the idea of social networking and think of facebook as a massive platform are people like to communicate.

We watched the communication move from you sitting at your desk on your computer to you doing the same stuff on your phone.

Facebook has been obsessed with following that trend.

Even if you think of the simple act of photos, it's a great way to tie the story together.

All the sharing of photos with your facebook friends, the power of the instagram platform which facebook felt it needed to have where you post a photo for everybody to see, and in the case of hwawhatsapp, people post thousands of photos per day.

It is like three parallel tracks.

Each of these platforms is different but there is a common tie which that it is people communicating through their phone and facebook wants to own that market.

How do you make money on this?

Don't worry about money.

How does facebook leverage this and have it mean something for the bottom line?

If there was any take away from the company's conference call that facebook and markers -- and mark zuckerberg and the head of whatsapp, they are not thinking about money but they are wondering how a billion people can use this platform.

Isn't there a danger in that?

I remember the days in 2000 where nobody thought through all the ramifications of what they were spending.

$19 billion is a really big valuation.

There is a danger here that the kids will be looking for whatever is now.

Dish is new.

-- is new.

Does facebook run the risk of being behind the curve by next year?

I think i want to avoid being behind the curve by doing something like this.

It's a bold move but on the money side, introducing advertising -- the clear takeaway is they feel that is not the thing to do right now.

And the early days of facebook and the early days of instagram, in both of those cases, that worked out.

One thing with whatsapp, in some markets, they try a subscriber model and that early days.

The barriers to entry are zero, they don't exist.

There are markets like that.

I think their hope is the fact that whatsapp already has 50 -- 450 million users.

You hope that 450 million users stay there and do not flock to the next version of snap chat.

$19 billion -- if i were an engineer in silicon valley right now, i would be high-fiving everyone.

55 people work at this company.

Thank you so much.

Walmart reports earnings this

This text has been automatically generated. It may not be 100% accurate.

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