After Facebook's acquisition of WhatsApp for an unprecedented $19 billion, who are the next big mobile messaging M&A targets?
Facebook’s explosive growth and potential in targeting ads has allowed it to command a rich valuation in the market and encroach on rival Google’s dominance. However, advertisers pay for attractive user bases, and as its core base of users began to disengage in favor of upstarts like Instagram, Facebook needed to make a move. While the $1 billion purchase of Instagram in 2012 shocked many, the rationale was simple – key demographics were actively using Instagram to communicate pictorially with the world. That was just the beginning.
Development teams continually search for the “next big thing” in messaging and communication hoping to acquire technology, talent, and user bases. Enter WhatsApp, the mobile messaging app acquired by Facebook in February, after its own email platform failed to gain traction. While the $19 billion valuation seems rich now, the 400 million active users that send billions of daily messages and photos was very intriguing to Facebook and other rumored parties. Users can be monetized; it is just a matter of how.
Mobile Messaging Companies Poised for M&A - DataFox Watchlist
Will other mobile messaging companies follow WhatsApp in commanding huge valuations? Snapchat has already turned down multi-billion dollar offers from both Facebook and Google…so how long until the next offer is made?
We've assembled 15 potential mobile messaging targets into a public DataFox watchlist - detailed revenue and funding data, as well as DataFox's proprietary Quality, Finance, HR and Influence scores.
We've pulled a data sample out of this watchlist and shared below. First, a quick look into the leading companies in this sector, as well as the top investors. Then, a sortable list of the 15 mobile messaging companies poised for M&A, with their DataFox Quality Score and current funding.