Everyone is shocked.
Facebook acquires Whatsapp, the most popular mobile messaging service for 19 Billion US Dollars.

Stories are being crafted. Questions are being asked. Make no mistake. Facebook has just made the opening salvo for the social networking and social connectivity dominance. One smart move and they now have what the Indian mythology called "Brahmastra", the infallible weapon in their quiver.

Whatsapp is undoubtedly the hottest text messaging service right now. And it has every right to be. Currently Whatsapp's user base count stands at 450 million users out of which 320 million are daily active users which is no mean feat. Facebook has always ranked as a behemoth. While experts keep oscillating between calling it a lumbering giant and a runaway train, there might just a method to madness in how Facebook operates on its short-term and long-term plans.

In the year 2012, Facebook became a member of the Billion Users Club. And in the Q4 of 2013, Facebook added 40 Million users as opposed to Twitter's 9 Million users in same quarter. In addition, after introducing Paper, Facebook's acquisition of Whatsapp proves its  capability to change its march from a web-first company to a mobile-first omnipresent social network that is determined, if not a tad desperate to reach out to its user base, both current and potential.

But where is the benefit for Whatsapp?

Here's an excerpt from Mark Zuckerberg's address on the deal: "WhatsApp is a simple, fast and reliable mobile messaging service that is used by over 450 million people on every major mobile platform. More than 1 million people sign up for WhatsApp every day and it is on its way to connecting one billion people. More and more people rely on WhatsApp to communicate with all of their contacts every day."

These aren't the words of a man who has taken a risk without knowing the calculations. Zuckerberg's drive to create a more open and connected world is evident from the way he starts the address. His expression of confidence in Whatsapp's future indicates that Facebook is heavily invested in creating a sturdy and encompassing mobile presence through the apps instead of solely focusing on the desktop environment. Whatsapp adds a million users a day. After Facebook's failed bid for Snapchat, Whatsapp acquisition makes tactical sense in order to reach out to teens who prefer the hip mobile messaging app rather than mainstream messaging services.

The bitter pill for Facebook has always been the slow growth and adaption of Facebook Messenger. While it is certainly used, it is definitely not at a scale which Facebook was expecting. As a result, Whatsapp's inclusion in Facebook's family means Whatsapp gets the support of a tech giant that will help propel it faster and higher towards the Billion user club while remaining independent at the same time. At 19 Billion Us Dollars, Whatsapp's acquisition stands at 9% of Facebook's market evaluation. In the Tech world, yes, it is an extraordinary amount of money for the 55-staff member strong startup. But it also means that right now, Facebook's acquisition places Whatsapp at a higher market cap than the names like United Continental, American Airlines, Ralph Lauren, Marriot International, Campbell Soup, Coach, and Tyson Foods.
Jan Koum states at his official Whatsapp Blog:

Here's what will change for you, our users: nothing.

WhatsApp will remain autonomous and operate independently. You can continue to enjoy the service for a nominal fee. You can continue to use WhatsApp no matter where in the world you are, or what smart phone you're using. And you can still count on absolutely no ads interrupting your communication. There would have been no partnership between our two companies if we had to compromise on the core principles that will always define our company, our vision and our product.
Jan and Zuckerberg share a camaraderie that shows in the way Facebook has welcomed Whatsapp into its bouquet of apps. Additionally, Facebook's failed bid at Snapchat seems to have ruffled some feathers and Facebook, must to its applaud, has bid its time and acquired a far larger, far more pervasive mobile message service that serves Facebook's purpose of mobile ecosystem takeover.

What will it mean for the future?

For Facebook: The addition of Whatsapp provides a much needed boost to Facebook's mobile app coverage in social connectivity. It lends Facebook an air of dignity in being a startup that has grown up, learnt to make big decisions and welcome new members in its family like an understanding supportive mentor. Additionally, Facebook stands to grow its international market in Europe and parts of Asia where Whatsapp is the primary mobile messaging service.
For Whatsapp: It is the hip, energetic and highly efficient prodigy of the family which has just been applauded and won the apprenticeship of one of the biggest tech giants in the world while retaining its independence. Whatsapp has provided its users the assurance that come what may, Whatsapp is a reliable mobile messaging service that stands by the promise that Jan Koum has made to himself in the note on his office wall "No Ads, No Games, No Gimmicks."

This is definitely the deal of the decade, if not the century in the Tech Industry and how it will affect our social networking on mobile is something the world is waiting to see while furiously sending texts to each other about it.

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