The Real Reason Facebook Paid $19 Billion for Whatsapp


Recently and very quietly Whatsapp has changed their terms of service. I was wondering why Facebook was willing to dish out that kind on money for the messaging service? Well now we know. Below is a little taste of what’s to come directly from the new TOS.

5. User Status Submissions

5B. […] by submitting the Status Submissions to WhatsApp, you hereby grant WhatsApp a worldwide, non-exclusive, royalty-free, sublicenseable and transferable license to use, reproduce, distribute, prepare derivative works of, display, and perform the Status Submissions in connection with the WhatsApp Service and WhatsApp’s (and its successor’s) business, including without limitation for promoting and redistributing part or all of the WhatsApp Service (and derivative works thereof) in any media formats and through any media channels. You also hereby grant each subscriber to your status on the WhatsApp Service a non-exclusive license to access your Status Submissions through the Service. The foregoing license granted by you terminates once you remove or delete a Status Submission from the WhatsApp Service.

So in a nut shell….we can do whatever we want with no restrictions to monetize and commercialize YOUR data.

For the full terms of service agreement click here.

Now we know why Facebook spent that kind of money. 500 million users and access to many many more. Moral of the story…  BlackBerry and BBM is the way to go.