How Facebook’s WhatsApp Makes Money

WhatsApp was founded in 2009 by Brian Acton and Jan Koum as an alternative to pricey SMS services. The app allows users to upload their contact book and message anyone who has the app installed, at no cost. It is available for iPhones, Androids, Blackberries, Windows Phones, Nokia phones and, most recently, desktops. Facebook Inc. (FB) purchased WhatsApp in February 2014 for $19 billion and according to the 2014 Facebook Form 10-Q, in the nine months...