Google is reportedly in talks with WhatsApp over a possible takeover deal that could see the instant messaging company acquired for close to $1 billion (£653m).
DigitalTrends says discussions have been taking place over the last four to five weeks and that WhatsApp was “playing hardball” to try to secure a higher price.
Google and Facebook have both been previously linked with a takeover, but Google’s interest is believed to be much stronger this time round.
Facebook has made similar moves with its own messaging app, but WhatsApp is the number one paid app on iTunes and can count on a user base spread across 100 countries and 750 mobile networks.
The app costs a nominal 69p, which is enough to keep it ad-free, while partnerships with international telcos have contributed a reported annual revenue stream of $100 million.
WhatsApp carried a record 18 billion messages on New Years’ Eve 2012 and is believed to have had a crucial role in the decreasing use of SMS messages. It is believed that the increased use of social messaging applications cost mobile operators $13.9 billion (£8.8bn) in lost SMS revenues in 2011.
Google had not responded to requests for comment at the time of publication.
Facebook bought Instagram last year for a similar amount, reportedly shelling out £630 million for the photo sharing app.
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