Boston, MA 02/21/2014 (wallstreetpr) – BlackBerry Ltd (NASDAQ:BBRY) shares were up in the market, after Facebook announced it had come into an agreement to purchase WhatsApp for $19 billion. The move that seem to have underscored the true value of messaging which includes BlackBerry’s competitive service.
BlackBerry Ltd (NASDAQ:BBRY) offers its own instant messaging service on the company’s devices as well as a free download in other devices such as iPhone and Android smartphones. Immediately after the announcement, BlackBerry shares clocked a high of $9.82 a share, an indication it is benefiting from the pricing of the messaging service.
With WhatsApp only having a membership of 450 million compared to BlackBerry 80 million things could change for the better in the coming days as investors and analysts start taking a keen interest in mobile messaging.
BlackBerry Ltd (NASDAQ:BBRY) messaging service currently commands a total membership subscription reaching 80 million monthly a valued at $3.4 billion compared to its total market value of $4.7 billion. This acquisition could not have come at a better time as the company tries to pick itself in the market after years of struggles and hardships. The company’s messaging service according to its Chief Executive Officer is the key to its success which if all goes well, should bring success to the company’s ailing smartphone industry.
The high valuation of WhatsApp is an indication according to many analysts that instant messaging apps are the next internet gold rush that should present a multibillion industry in terms of revenue. This essentially strengthens BlackBerry Ltd (NASDAQ:BBRY) in the market as it already has its messaging service. The steep valuation by Facebook could be beneficial in the long run to other messaging apps such as WeChat Line and Kakao.
BlackBerry Ltd (NASDAQ:BBRY) was up in the market with the latest announcement of WhatsApp acquisition climbing by a high of 3.77 % to close the day at highs of $9.35 a share.
