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Google tried to buy WhatsApp for $10B before Facebook succeeded with $19B purchase

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Image: mobilegeeks.de

Update: TheInformation is reporting that Google was willing to beat Facebook’s $19 billion offer. More behind a paywall here.

Google tried to buy messaging service WhatsApp for $10B prior to Facebook’s successful $19B bid, according to two separate sources cited by Fortune. It has also been reported that Google had earlier offered WhatsApp “millions of dollars” simply for the right to be informed if WhatsApp received an offer from anyone else, an offer the messaging company turned down.

The size of the offers seem almost incredible given that the app is free and has no ads. Its entire revenue stream depends on users signing up to a 99c annual subscription after their first year, giving it – at present – a revenue ceiling of $450M a year.

But it’s likely that WhatsApp’s real appeal was it provides access to a core market for the future: mobile-first users in developing markets … 
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Whatsapp adds easy to use push-to-talk voice messaging

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Popular chat app whatsapp now allows Android users to exchange voice messages with a push-to-talk style function. The feature is also being pushed out simultaneously on the app’s other platforms: iOS, Blackberry, Nokia and Windows Phone.

We spend a lot of time at WhatsApp thinking how we can make keeping in touch easier, and we know there’s no substitute for hearing the sound of a friend or family member’s voice. So today we are introducing a new feature we are truly excited about: Voice Messages

While there are other push-to-talk apps out there, whatsapp has introduced a number of features which it says makes the functionality particularly easy to use … 
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WhatsApp says it’s not holding sales talks with Google despite earlier rumor

This past weekend, a rumor had claimed that Google is holding talks with WhatsApp to acquire the messaging service for around $1 billion. Tonight, WhatsApp has told AllThingsD that it is not holding sales talks with Google. Meanwhile, Google is rumored to soon be launching its own “Babel” messaging service.


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Google+ message suggests Google Babel launch may be close

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A message reported by a Google+ users suggests that Google’s rumored Babel integrated messaging service may be close to launch:

The screengrab posted by Patrick Dhawaan shows the message All conversations have been moved to the Trash. Because one or more are part of a Babel chat, these messages are still available in other Babel chat applications …
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Google rumored to be planning to buy WhatsApp for a cool billion (Update: Denied!)

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Update: WhatsApp denies the rumor

Digital Trends claims that Google is negotiating to buy the hugely popular messaging app, WhatsApp – with the company said to have rejected initial offers and to be holding out for a price said to be close to $1 billion (via Gizmodo).

Google is on record as acknowledging its weakness in the mobile messaging field, with Digital Trends arguing that the acquisition makes perfect sense.

There are rumors that Google Babel will combine Google’s disparate communication services under one roof, but the platform still needs to do something to innovate in this space; mobile messaging has been taken over by smaller apps and Facebook has made a major push as well. Google hasn’t given an answer to this competition. Even Google Product Manager Nikhyl Singhal confessed to GigaOM in June of last year that “We have done an incredibly poor job of servicing our users here.” Messaging is a huge, gaping hole in Google’s mobile strategy.

Google Voice already offers most of the features of What’s App making the acquisition primarily a subscriber play, but we’re not exactly holding our breath on this one. Remember Google already has some Bable thing being cooked up, so adding something huge like this might put a wrench in the works.