Boston, MA 02/28/2014 (wallstreetpr) – Facebook Inc. (NASDAQ:FB) acquisition of WhatsApp is the biggest under its portfolio to date, surpassing the $1 billion acquisition of instagram that could yet get it into hot water with looming privacy concerns. The acquisition is thought to be arousing lots of probes in Europe as watch dogs start to keep a keen eye on mobile messaging and Facebook. The price mark that Facebook had to pay for the big message app is what is raising concerns in Europe.
Facebook Inc. (NASDAQ:FB) acquisition of WhatsApp continues to receive mixed reaction in the market with some analysts of the highest opinion the messaging company was overpriced. Facebook on their part through their Chief executive officer maintain the $19 billion paid was lower considering the platform looks set to reach a total of 1 billion in terms of User subscription.
Concerns facing Facebook
The cash and stock acquisition makes Facebook acquisition the largest in the social media industry giving WhatsApp almost the same valuation as Gap Inc. and half the market value as Twitter Inc. (NYSE:TWTR). WhatsApp currently allows users to send messages through mobile devices with different operating systems such as Googles Android, Microsoft Windows and iOS on Apple.
There are currently over 28 privacy authorities that can decide to issue a probe into WhatsApp as the company is not well developed in Europe. The main target of this probe will try to find out how any data collected in this platform is used. The biggest concern would be whether any data collected could be used for a completely different purpose.
Many European and Dutch governments are notably concerned with the fact that WhatsApp also has data for people who are not using its App which is a violation of some of their laws.
Facebook Inc. (NASDAQ:FB) as of the beginning week looked set to hit the $70 mark, this mark could not be reached on Thursday trading session as the company slightly slumped by 0.46% to close the day at a low of $68.94.
