WhatsApp has its head in the clouds, or should we say Cloud API?

WhatsApp's new venture could be key to diversifying Meta's revenue streams.

What's the key learning?

Revenue diversification is crucial for a company's financial security.
When company revenues are more evenly spread, it reduces reliance on just one way to make money.

👉 Background: Facebook acquired WhatsApp for USD$19 billion back in 2014. Like all things with Facebook, there has been controversy - (*cough* changing their privacy policy last year 😬).

👉 What happened: Now Meta's going for something a little more clean cut with WhatsApp. It's launching something called Cloud API and it has been brewing since 2017 ☁️.

👉 What else: Essentially, it's a communication tool between businesses and customers. Think chatbots, IG DMs and phone calls. It's all part of Meta's plan to diversify away from its advertising revenue.

🔔What's the key learning?

💡 Revenue diversification is the key to financial security for a company. When a company's revenues are more evenly spread, it reduces its reliance on one particular way to make money.

💡This has been a huge focus for Big Tech companies recently. Although Amazon began as an e-commerce platform, only 47% of its revenue is from there now. Apple has also grown its services businesses to become almost 20% of its revenue.

💡Meanwhile, 97.5% of Meta's revenue last year still came from ads 👀. So, WhatsApp's new Cloud API is a big bet for Meta to start diversifying its revenue.

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WhatsApp has its head in the clouds, or should we say Cloud API?

What's the key learning?

🔔What's the key learning?

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