Who Owns WhatsApp?

Who owns WhatsApp? Meta owns WhatsApp, a company founded in 2009 by Brian Acton and Jan Koum, two former employees of Yahoo. In 2014, Facebook acquired WhatsApp for a staggering $19 billion, making it a subsidiary of Facebook Inc. (now Meta Platforms). As a result, WhatsApp is now owned by Mark Zuckerberg, the founder and CEO of Facebook, along with other shareholders of Facebook Inc.

WhatsApp has become one of the world’s most popular instant messaging platforms, connecting billions of users globally. Its user-friendly interface and features like end-to-end encryption, voice, and video calling have played a significant role in its widespread success.

Since being acquired by Meta (formerly Facebook) in 2014, WhatsApp has been integrated into Meta’s broader ecosystem. This includes data-sharing practices that enhance ad targeting and user analytics across Meta’s platforms, which has drawn significant attention. WhatsApp’s founders, Jan Koum and Brian Acton, were initially resistant to this integration, advocating for strict user privacy and data encryption.

However, in 2017 and 2018, both eventually left the company due to disagreements over the extent of data sharing and monetization, signaling Meta’s increasing influence over WhatsApp’s operations.

Nonetheless, Meta’s leadership, including CEO Mark Zuckerberg, has consistently emphasized its commitment to ensuring the privacy and security of WhatsApp users while enhancing the platform’s features and services. While WhatsApp retains its branding and distinct user base from Facebook and Instagram, Meta maintains substantial control over its strategic decisions.

Top WhatsApp Individual Shareholders

Mark Zuckerberg

When Meta Platforms (formerly Facebook) acquired WhatsApp for $19 billion in 2014, the ownership of WhatsApp was transferred to Meta. This acquisition made WhatsApp a subsidiary of Meta rather than a direct property of Mark Zuckerberg. While Zuckerberg did not personally acquire WhatsApp, his substantial role as the CEO and co-founder of Meta gives him significant influence over the company and its subsidiaries, including WhatsApp.

As a significant shareholder of Meta, Zuckerberg holds approximately 343.91 million Class B Meta shares, valued at around $163 billion. This stock represents his significant financial stake in Meta and grants him considerable control over the company’s strategic decisions.

Although Zuckerberg is not a direct individual shareholder in WhatsApp, his influence extends through his leadership role and substantial ownership in Meta. This control encompasses WhatsApp, Instagram, and other subsidiaries under the Meta umbrella.

Ownership under Meta (formerly Facebook)

In February 2014, Facebook acquired WhatsApp for a staggering $19 billion, marking one of history’s most significant technology acquisitions. This deal highlighted the app’s immense popularity and demonstrated Facebook’s strategic desire to expand its footprint in the global messaging space.

Facebook’s CEO, Mark Zuckerberg, recognized that WhatsApp had significant potential, particularly in regions where Facebook’s core platform was less dominant, such as India, Brazil, and parts of Africa.

Meta Ecosystem: Integration of WhatsApp

With the acquisition, WhatsApp became part of what is now known as Meta’s broader ecosystem, including Facebook, Instagram, Messenger, and the growing suite of VR and AR technologies.

However, unlike Instagram, which underwent immediate visible integration into Facebook’s ecosystem, WhatsApp maintained much of its autonomy, particularly in its early years under Facebook ownership. This approach was intentional, as Facebook wanted to ensure that WhatsApp’s user base, which valued privacy and simplicity, remained loyal.

Meta’s philosophy has evolved, shifting from a standalone social network to a conglomerate of apps and services designed to create interconnected social experiences. WhatsApp, the company’s leading messaging platform, is critical in this ecosystem.

By maintaining a distinct identity from Facebook and Messenger, WhatsApp appeals to a wide range of users, particularly those who prioritize secure, private messaging over the public sharing of information typical on Facebook.

Meta Influence on WhatsApp’s Operations and Leadership

Though Meta allowed WhatsApp to operate semi-independently for a few years after the acquisition, it gradually exerted more influence over its development, leadership, and strategic direction.

Notably, WhatsApp’s founders, Jan Koum and Brian Acton, were outspoken advocates of user privacy and maintained a firm stance against incorporating advertising into the platform. This led to tensions between the founders and Facebook leadership, which sought to monetize the app to recoup the massive acquisition cost.

Eventually, these differences in vision led to both founders departing from WhatsApp—Acton left in 2017, and Koum followed in 2018. Their exits paved the way for Facebook to take a more hands-on approach in shaping WhatsApp’s future, particularly around monetization efforts, which have led to controversy.

WhatsApp Place in Meta Monetization Strategies

One of the significant changes post-acquisition has been Meta’s efforts to monetize WhatsApp, which was previously subscription-based before transitioning to a free-to-use model. While WhatsApp initially operated with little to no focus on generating revenue, Meta has since explored various ways to make the app profitable, mainly through its WhatsApp Business API, which allows businesses to communicate with customers via the platform.

Meta sees WhatsApp as a significant potential revenue stream, especially in emerging markets where users may be less engaged with Facebook or Instagram but rely heavily on WhatsApp for communication. The company wants to drive revenue through the app’s integration with other Meta platforms, particularly Facebook’s advertising engine.

While WhatsApp does not serve ads directly, businesses can use Facebook and Instagram ads to direct users to WhatsApp for customer service, inquiries, or sales, effectively linking WhatsApp to Meta’s ad ecosystem.

In addition, Meta has launched WhatsApp Pay in select markets, including India and Brazil. This payment feature enables users to send money via WhatsApp, similar to platforms like WeChat in China.

Meta’s long-term strategy likely involves expanding this payment functionality globally and positioning WhatsApp as a communication tool and a financial services platform.

How Much is WhatsApp Worth

As of 2023, WhatsApp’s value is estimated at around $98 billion. This valuation considers its extensive user base of over 2.4 billion monthly active users globally. Since Facebook’s (Meta) acquisition of WhatsApp, the platform has grown significantly, mainly through features like WhatsApp Business, which serves millions of small businesses.

WhatsApp generates revenue primarily through its business model, with WhatsApp Business and potential monetization features like WhatsApp Pay and enterprise services. In 2022, WhatsApp generated $906 million, almost all from the WhatsApp Business app.

In 2023, the platform earned around $1.2 billion in revenue, contributing approximately 0.9% to Meta Platforms’ total revenue and showing strong growth potential as it expands its business offerings.​

Conclusion

In conclusion, WhatsApp is owned by Facebook Inc. (now Meta), which acquired the platform in 2014 for an impressive $19 billion, marking it as one of the most significant tech acquisitions in history. Despite initial concerns regarding user privacy and data security post-acquisition, WhatsApp has managed to maintain its identity as an independent platform while benefiting from Facebook’s resources. 

The app has continued to grow in popularity, becoming a vital communication tool for billions worldwide. As Facebook, now operating under the umbrella of Meta Platforms, Inc., seeks to enhance and monetize WhatsApp, it remains focused on user privacy and security. With its strong ownership and innovative strategies, WhatsApp is poised for ongoing growth and success in the competitive messaging app landscape.