Facebook to buy WhatsApp for $19bn

February 20, 2014

New York, Feb 20: Facebook has bought messaging app WhatsApp in a deal worth a total of $19bn (£11.4bn) in cash and shares.

It is the social networking giant's biggest acquisition to date.

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WhatsApp has over 450 million monthly users and is popular with people looking to avoid text messaging charges.

In a statement announcing the deal, Facebook founder Mark Zuckerberg described WhatsApp's services as "incredibly valuable".

WhatsApp allows users to send messages over internet connections, avoiding text messaging fees. The company claims it is currently registering one million new users a day.

It makes money by charging users a subscription fee of $1 per year, although it offers a free model as well.

The deal gives Facebook access to the 450m people who use WhatsApp's service every month, effectively turning one of its biggest potential threats into a valuable ally.

It will also help Facebook cement its position at the heart of users' lives, and will reinforce its standing with younger users, who have been drifting away from the social network in favour of WhatsApp and other instant messaging services.

Mark Zuckerberg, Facebook's founder and chief executive, said the two companies would work together “to make the world more open and connected”. “WhatsApp is on a path to connect 1bn people. The services that reach that milestone are all incredibly valuable.”

Jan Koum, the Ukranian chief executive and co-founder of WhatsApp, added that he was “excited and honoured” to be joining Facebook. "WhatsApp's extremely high user engagement and rapid growth are driven by the simple, powerful and instantaneous messaging capabilities we provide.”

The two men have known each other for years, but only began discussing the deal 12 days ago. The settled it for $19bn, including $4bn in cash, $12bn in Facebook shares and $3bn in restricted stock awards for WhatsApp's founders and employees.

Facebook has also agreed to pay WhatsApp a $2bn break free - half in cash, half in shares - if the deal falls foul of regulatory hurdles. Mr Koum, who co-founded the company with Brian Acton, whom he met when they were both working at Yahoo!, will join the Facebook board.

Mr Zuckerberg said Facebook would allow WhatsApp to continue operating as an independent service, in much the same way it has done with Instagram, the photo messaging service it bought for $1bn in 2012.

He added that Facebook would allow WhatsApp to focus on growing its user base, rather than squeezing money out of its existing subscribers. At the moment, the company makes money from the 99 cent fee it charges users who want to download its app, and a subsequent 99 cent-a-year usage fee.

The deal immediately raised fears that Facebook would introduce adverts to WhatsApp, but Mr Zuckerberg said on Wednesday evening that he does not "personally think ads are the right way to monetize messaging systems”.

The deal comes as a major blow to Google, which reportedly made a $1bn bid for WhatsApp last year.

It also casts Facebook's previous transactions in a new light. Analysts were stunned when the social network paid as much as $1bn for Instagram, but that figure is dwarfed by the sum it has paid for WhatsApp.

Shares in Facebook fell 5pc in after-hours trading in New York, amid fears that the company had overpaid.

However, the news gave a 7pc boost to BlackBerry shares, as investors bet on Google, or another of Facebook's competitors, trying to buy its valuable BBM instant messaging service.

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November 5,2024

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Mangaluru: The Karnataka Maritime Board (KMB) has initiated the groundwork for the much-anticipated Mangaluru Water Metro Project (MWMP). The project, which was first announced by Chief Minister Siddaramaiah during the state budget presentation, aims to introduce water-based public transport along the Gurupur and Netravathi rivers in Mangaluru.

The proposed Mangaluru Water Metro will follow in the footsteps of Kochi's successful Water Metro system, which has become a model for eco-friendly and efficient urban transport in India. The KMB will now conduct necessary feasibility studies to assess how this concept can be adapted to Mangaluru's unique geographical and urban landscape.

A 30-Kilometer Stretch Connecting 17 Key Locations
According to a senior officer from KMB, the project will span a 30-kilometer route that connects key points across the rivers and coastline. The water metro service will cover locations such as Bajal, Kulur Bridge, New Mangaluru Port, Sultan Battery, Tannirbhavi, Old Port, Hoige Bazaar, and Someshwar Temple. The service aims to link 17 important points, benefiting both daily commuters and tourists. This initiative not only seeks to reduce congestion in Mangaluru but also promises to boost tourism and recreational activities by providing an alternative mode of transport.

Focus on Eco-Friendly and Efficient Water Transport
The Mangaluru Water Metro will feature modern catamaran boats, which may be powered by electric or diesel engines. These boats will be equipped with essential amenities to ensure smooth and safe operations. The project’s emphasis on sustainability means that the boat fleet will be designed to minimize environmental impact, making water transport both eco-friendly and economically viable.

Feasibility Study to Shape Project Design
The initial feasibility report will cover several crucial aspects, including the placement of water metro stations. These locations will be chosen based on factors such as passenger demand, availability of land, connectivity to other transport modes, and sustainability. A detailed LiDAR (Light Detection and Ranging) survey will further aid in mapping the river routes and surrounding areas, providing precise data for the project’s planning phase.

In addition to assessing operational needs, the feasibility study will also project future demand for water metro services over the next 25 years. By exploring various scenarios, planners can ensure that the water metro is designed to accommodate both current and future user requirements.

Special Purpose Vehicle for Project Management
The report is expected to recommend creating a Special Purpose Vehicle (SPV) to manage the project. This independent entity would help secure funding, attract investors, and ensure professional oversight, enhancing the project's credibility and long-term viability.

What is the Mangaluru Water Metro Project?
The Mangaluru Water Metro Project aims to introduce a sustainable water-based public transport system to alleviate traffic congestion in the city and promote tourism. Inspired by the Kochi Water Metro, the project will create a seamless and eco-friendly transport option along the Gurupur and Netravathi rivers, covering key points across the city’s riverside and coastal areas.

Once operational, the Mangaluru Water Metro will offer a modern, efficient, and scenic alternative to road transport, helping transform urban mobility in the city while boosting tourism and reducing environmental impact.

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News Network
November 19,2024

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The Karnataka Police’s Anti-Naxal Force (ANF) achieved a major breakthrough on Monday night by eliminating Vikram Gowda, one of Karnataka’s most wanted Naxal leaders for over two decades. The encounter occurred in the dense Kabbinale forest of Udupi district, marking a significant victory against Naxal insurgency in the region.

Who Was Vikram Gowda?

Hailing from Hebri in Udupi, Vikram Gowda, 44, was a prominent figure in the Naxal movement. He went underground in 2002, initially serving as a courier and fund collector before rising to lead a breakaway Naxal group. Despite having only a fourth-grade education, he was a staunch advocate for tribal rights and a key player in the movement’s survival in Karnataka.

Bounty: ₹3 lakh from Karnataka and ₹50,000 from Kerala.

Legacy: The last major Naxal leader in Karnataka after the 2021 arrest of B G Krishnamurthy.

The Encounter

Police revealed that Gowda and his team visited Kabbinale village to collect groceries on Monday night. Acting on a tip-off, ANF ambushed the group. When the Naxals opened fire, ANF responded, leading to Gowda's death.

Escapees: Three Naxals fled, including prominent members Latha (aka Mundgaru Latha) and Raju.

Significance: This was the first Naxal casualty in Karnataka in over two decades.

Home Minister G. Parameshwara confirmed the operation, stating, “Gowda was elusive for 20 years, escaping multiple encounters. His death is a critical step in dismantling Naxal operations in the region.”

The Decline of Naxal Activity in Karnataka

Karnataka's Naxal movement has been dwindling, with members seeking refuge in Kerala and Tamil Nadu. The group’s strength had reduced to just 19 members by 2018, but recent sightings indicate attempts at revival:

2023 Activity: Reports of Gowda-led movements in the Kodagu and Hassan districts reignited concerns.

Political Heat: The BJP criticised the Congress government, alleging it created a “safe haven” for Naxals.

A Glimpse into Gowda’s Past

Personal Life: Gowda’s ex-wife, Savitri (alias Rajita), was arrested in 2021. She was a senior Naxal commander involved in insurgency since 2004.
Rehabilitation Efforts: Since 2013, Karnataka’s rehabilitation policy has seen 14 Naxals surrender and reintegrate into mainstream society.

A Milestone in Karnataka’s Fight Against Insurgency

The operation signifies a decisive blow to Naxal resurgence in the Western Ghats. While the ANF continues its search for escapees, the Karnataka government reaffirmed its commitment to offering rehabilitation to those willing to surrender.

As Karnataka celebrates this triumph, the message is clear: there is no room for insurgency in the state.

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News Network
November 10,2024

Bengaluru: The Karnataka government has warned that disciplinary action will be taken against those officials who change the land mutation records and serve eviction notices to farmers under the Waqf Act.

In a letter, the Revenue Department Principal Secretary Rajender Kumar Kataria reminded all regional commissioners and deputy commissioners in the districts that Chief Minister Siddaramaiah recently had a meeting following complaints about certain land properties being made in favour of the Karnataka Board of Waqfs.

In the meeting it was decided that all the directions issued previously by any government office or authority to change the mutation records has been withdrawn, the letter said.

It added that all the notices served in the past have also been withdrawn and no action should be taken against the farmers who are cultivating on the said land.

On the directions of the chief minister, the previous letters and the latest reminders served on November 7 to the farmers and land owners have been withdraw, the letter said.

"The officials who served reminder-2 despite the chief minister's direction will face appropriate disciplinary action," Kataria said in his letter.

He said he has been instructed to strictly implement the chief minister's direction.

The fresh direction was issued in poll-bound Karnataka, where bypolls to three crucial assembly segments are due on November 13.

Some farmers in Honwad village in Vijayapura in north Karnataka had alleged last month that they were served eviction notices as the Waqf Board claimed rights over it.

Subsequently, complaints started in pouring in from some other parts of the state.

BJP leader Tejasvi Surya on October 25 alleged that Karnataka Waqf Minister B Z Zameer Ahmed Khan directed the deputy commissioners and revenue officials to register lands in favour of the Waqf Board within 15 days, which resulted in confusion.

On Surya's request, the Chairman of the Joint Committee of Parliament on the Waqf (Amendment) Bill, Jagdambika Pal visited Karnataka on November 7 and met farmers in Hubballi, Vijayapura and Belagavi districts who had alleged that their lands were marked as Waqf properties.

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