Whatsapp used to charge 1 eur or usd per year per user.
Assuming a 20% vat, that’s $800M in yearly revenue. If you spend $500k per engineer per year, you’re still left with $775M to handle infrastructure and all other expenses.
Whatsapp would have been sustainable without fb. That’s the regret.
> If you don't sell to us, we'll build our own and offer it for free
Weren't they already doing that? Facebook Messenger officially launched in 2011 (essentially an upgrade to Facebook's built-in chat functionality which existed before that) and was free, yet Whatsapp continued to grow.
Exactly. Facebook bought WhatsApp’s users like cattle on auction. WhatsApp guys just needed the right price offer. Now with pseudo tech posts like the current they are trying to mask it’s public image behind some ancient tech innovation from it’s past…
WA Management was misled by Facebook about what FB wanted to do with WA. I agree that you'd have to pretty naive to believe FB but it's not like WA founders sold solely because of money.
WhatsApp founder Brian Acton left 850 million USD on the table when he left Facebook prematurely in protest of Facebook's lies about the vision they had for WhatsApp after its acquisition. After that he donated 50 million USD to the Signal foundation.
Technically, but GP is allocating over 95% of post-tax revenue to everything other than engineer salaries, which is probably extremely generous.
WhatsApp had 200M users in February 2013[1], which was a year before they were acquired by Facebook. Perhaps they wouldn't have gotten to 1B users without Facebook, but I'm sure they still would've grown in the last ~8 years, and fewer users likely results in lower costs. My guess is they would still be doing very well.
Even before the sale, most of the customers are non paying. They are offering the service for free in countries with largest userbase(India and Brazil I think). I really doubt it had reached 50 million paying at any point in time.
They could also easily have had different pricing based on location. Requiring EU and US users to pay €5 per year, while have perhaps just €0,25 in Asia, and free in Africa.
If you can't get someone to pay €5/$5 per year for a service they use every single day, then there's something really wrong in how we as users think about the service we use every day.
> If you can't get someone to pay €5/$5 per year for a service they use every single day, then there's something really wrong in how we as users think about the service we use every day.
Which is absolutely the case with most people and recurring payments, even with one time payments. If Signal costed money (even 1-2$), I could not have convinced even 10% of the people I got over to Signal - recurring or one time.
I've used Whatsapp for a few years when they had this pricing model. Use 1 year for free and pay after. I've never paid anything and nobody who I know needed to pay to keep using WhatsApp.
Whatsapp had 700m+ monthly users in early 2015 [1] before they scrapped their subscription fee in early 2016 [2]. Whatsapp was free to use in some jurisdictions for the first year, so we can't assume there was $700m in revenue, but there was certainly enough to pay for 50 engineers you would think.
Whatsapp only had a subscription fee for android users, and I don't know anybody who ever paid for it. They would keep giving you more and more free time; free subscription time would never run out. I imagine it ran out for some users, but I don't know what the criteria was. Perhaps for users in certain countries? Or for users with lots of iphone friends?
On the other hand, iphone users had to pay for the app upfront to download it off the app store.
Whatsapp is built on a massive, mature, global system specifically designed for sending messages. It's sad that it needs to exist and even more sad that it has to "make money" for someone. Aren't we already paying for our internet connexion/phone bill? Why do we need to be used by Whatsapp just to utilise it for its most basic purpose?
Does it? Dumbphones from 30+ years ago can still send SMS messages just fine with zero software updates. Maybe once a decade or so that could have been enhanced with longer messages, pictures etc. But overall the messaging problem really should have been solved by now.
Yes, it does. SMS aren't encrypted. And messaging is closer to being solved than ever before. If you want to use a "dumbphone" with SMS you can do that.