WhatsApp & Instagram Are Equally Important: Murarka

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March 17 (Bloomberg) -- Bubba Murarka, managing director at Draper Fisher Jurvetson, discusses Facebook's $19 billion acquisition of WhatsApp with Emily Chang on Bloomberg Television's "Bloomberg West." (Source: Bloomberg)

Continues to be for a long time which is making it bets, proving that he has the ability to pull them off and getting the deal done in one month and not backing down afterwards.

Is $19 billion worth of?

Only time will tell but certainly if you look at some of the different active user comps - the market opportunity, it could replace communications on mobile.

That is worth a lot.

The mobile communication industry is one dollars trillion.

-- is $1 trillion.

When you are at facebook, were you aware of whatsapp?

When do you think they started following it closely?

That's a good question -- i think we were always aware of it given the global perspective.

80% of facebook users are outside of the state that we are aware of other companies -- they are aware of other companies.

I think it was a serious observation based on the whole category.

You had different applications.

There is a phenomena going on and that's why i think they created messenger brand.

They realize the right way to win in this market was to acquire whatsapp.

Give us an idea of what you think mark was thinking.

Why did he buy this for this much money and what does he plan to do with it?

The reason he bought it for this much money is he got the deal done.

When you want to do something fast which is a hallmark of facebook, you have to give them something, you have to make the deal compelling.

I think rice was clearly very compelling in this case.

-- i think price was worth very compelling in this case.

You have to know what your plan is and stick to it.

They want to let whatsapp thrive independently and grow and overtime, the way a couple months facebook will be like instagram.

Facebook put itself in a position to have the must-have communication and social applications on mobile.

That is a huge franchise to own and leverage.

Do you think there will be advertising?

Do you think there will be stickers?

Where does whatsapp go from here with an facebook?

I think jan is clearly does not believe that stuff and i'm sure he and marquette a real sees serious conversation.

I expect them to monetize through subscriptions or directly charging the carriers.

In some models, it is not advertising and not stickers or distribution.

Does this dwarf instagram in any way?

I don't think so.

Jan is on the board and kevin is not.

When instagram was richest it was earlier and had 30 million active and when it closed it was closer to $100 million.

Whatsapp whatsapp is about half of facebook.

It's a different time and different scope of acquisition.

I think both of them will be equally important.

What do you think of the idea of facebook working on more standalone apps?

Paper looks great when it came out but people have already forgotten about it, it seems.

One of the challenges with a portfolio of app strategy is getting engagement.

There is not a lot of mobile apps that people open every day.

That is what i saw when i was at facebook.

On the flipside, the design usable behind mobile are tapping into my experience building mobile apps and seeing the data on facebook.

Single-purpose apps are really powerful.

People want to go to an app to do a specific task and then go to another.

That user behavior is dictating the facebook strategy.

Do what customers want and that's how you ultimately succeed.

I think they are adapting their strategy and there is other challenges they are taking on.

You don't get distribution automatically by taking on the big app.

They will have to learn to reactivate users.

The morocco managing director.

Back here with me now is cory

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


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