Mark Zuckerberg, a name of a genius that knows how the world works and can what development it needs. He is a total planner, and an even better investor, he not only invests or buys companies, but he also calculates every possibility as you can tell by looking at his record of investments and the companies he bought all are huge successes for him.

He is the mastermind behind Facebook launched On February 4, 2004, which left the whole world bedazzled. This social media app created a huge impact because this was the first time people would get connected, no matter where they are I even found somebody to write my essay for me UK when I posted on Facebook for help, that was incredible. The number of Facebook users worldwide is 2.99 billion whereas internet users according to statistics are 4.8 billion, which means half the internet users use Facebook.

Instagram was a threat to Facebook?

Everything was going great but then Mark Zuckerberg wanted to make something greater, a revolutionary decision was made when he bought Instagram for $1 billion in 2012. According to alleged emails, the Facebook owner knew that it was affecting his traffic and wanted to avoid competition because both Facebook and Instagram were similar in nature but Instagram was made to share pictures and videos whereas Facebook wasn’t doing any of the sort at the time.

Reasons and Offers:

  • It was getting in a line of getting good business because it was connecting people from all around the world together in one place. Whereas Instagram focuses more on the graphical side, because Kevin Systrom the founder of Instagram loved photography so he created an app where everyone can share their pictorial work and with time it became one of the most popular apps in the world.
  • People thought Mark made a huge mistake when he bided $1 billion to buy Instagram. But he knew that what seems like a small competition, with its potential can be a noose around his company’s neck shortly.
  • When he heard about the $500 million valuation, he immediately offered to buy it and told Kevin Systrom that he will double it and is interested in buying this app.
  • Systrom didn’t want Instagram to run as a Facebook product, he wanted individuality and to be the visionary of this app.
  • Mark successfully molded his thoughts into the idea of Facebook getting traffic and unimaginable resources to come to Instagram and it will make it emerge as more strong and more popular.
  • Mark made a commitment that he will let Systrom run Instagram as a separate company.
  • It was a risk worth taking ten years later. IG, as it is popularly known, has risen enormously to be worth 100 times its initial value ten years later.
  • Instagram had over 1 billion downloads at the stage of publishing, indicating the platform's popularity among its users.
  • Purchased for $1 billion in 2012, it have grown to value more than $100 billion by 2022.

Now you can already know the answer as to why Zuckerberg bought Instagram and what he saw and how he is such a visionary entrepreneur.

Why did Facebook spend a whopping $19 billion to acquire WhatsApp?

After 2 years of acquiring Instagram, Mark Zuckerberg made another head-turning decision in 2014 when he offered to buy WhatsApp for $14 billion whereas WhatsApp’s revenue was just $1.2 million and was not profitable at that time. Acton and Koum aimed to create what they called "the ideal app", one that could be downloaded entirely free of cost and free of commercial interruptions.

They launched WhatsApp in 2010, a free messaging application designed to be competitive with cellphone text messaging. As WhatsApp co-founder Jan Koum previously said: "Our goal is to be on every smartphone. Every single one of them." According to his assessment, there was an estimated 5 billion cellphone users who will have smartphones and they will have 5 billion potential customers who will give them money.

At first Acton and Koum denied all the investors that were ready to invest capital and also were offering to expand this app.

Sequoia’s capital infusion:

After denying every offer they agreed on taking Sequoia’s offer as it gave them leverage to them by not interfering in their matters and it became their strategic partner. It was willingly investing without the profit promise. After that, it became a success and immediately earned users and expanded their app. And then other investors came interested in this app but Acton and Koum accepted the offers of those who wouldn’t question the profitability. And in 2013 WhatsApp gained more than 1 billion users.

Mark Zuckerberg wanted major growth in emerging economies and WhatsApp could help:

He knew that WhatsApp has significant value and it would help Facebook to grow more rapidly. Mark admitted that WhatsApp is a clear leader in Europe, Latin America, India, and Asia. It had the upper hand and was available for every device like iPhone, BlackBerry, Android, Windows Phone, and Nokia. It also had a good reputation as it was working prominently and effectively even if there was poor coverage over there.

Asian messaging apps were taking over:

KakaoTalk, Line, and WeChat were spreading and emerging like fire in the jungle and he was afraid that if any of these messaging organizations bought WhatsApp then it will be a huge blow to Facebook and its chances of spreading in the big markets because these were all his competitors.

Conclusion:

Mark Zuckerberg has been an amazing entrepreneur who invests in the future. He knew the potential of these companies and also knew they would someday replace his company, so he took every opportunity he could get to mold everything toward him, and without any doubt, he succeeded in doing that. Buying Instagram and WhatsApp was the best decision of his life, and he offered them a shocking amount of dollars because he knew what they could do shortly I think it was his well thought assessment, he did all his homework and then took the bid and won at life. He is such a mastermind that I want him to write my research paper for me UK on how to be successful, he will surely write a great piece, but that would remain a dream and I have to do it by myself.