Google rumored to be buying WhatsApp for $1 billion

According to anonymous sources who are said to be close to the negotiations, Google is looking to purchase cross-platform messaging app WhatsApp. According to these sources, the WhatsApp team is pushing hard for a price around $1 billion. The idea is for Google to tie up all of its messaging services in a project called Babel and Mountain View could use the WhatsApp team to help it behind the scenes with the technology. Last summer, Google paid slightly under $25 million to purchase iOS email client Sparrow mostly to pick up some much needed talent on Google's part.

There is no guarantee that a deal between WhatsApp and Google can be hammered out. Last December the two were said to be discussing an acquisition which never made it past the talking stage. At that time, Facebook was also said to be interested in the messaging app. Users of WhatsApp pay $1 for the service with iOS users paying at the time of download while Android users pay after a free first year. Not only is it the second most popular paid app in the Apple App Store, it carried an incredible 18 billion messages on New Year's Eve. Some estimates have the app pulling in about $100 million a year in revenue.

source: AppleInsider

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