Could Facebook Adopt a New Revenue Model?
When Facebook announced last week it was acquiring WhatsApp for $19 billion, it also appointed the company's CEO of just 55 employees to the social network's board of directors. Will WhatsApp co-founder and CEO Jan Koum bring a convincing case for new approaches to revenue? After all, WhatsApp has despised ads and instead opted for a simple $1 per year subscription model.
Given that Facebook is already one of digital advertising's biggest names, the company's main platform is not likely to ditch ads. But as the company is bringing a stream of new apps to market with the new Facebook Creative Labs initiative, it's possible Koum's subscription model could see the light of day in future Facebook projects.
Fool contributor Daniel Sparks discusses the possibility of Facebook adopting a WhatsApp-like subscription model in the video below.
Three stocks to buy and hold for the long haul
As every savvy investor knows, Warren Buffett didn't make billions by betting on half-baked stocks. He isolated his best few ideas, bet big, and rode them to riches, hardly ever selling. You deserve the same. That's why our CEO, legendary investor Tom Gardner, has permitted us to reveal The Motley Fool's 3 Stocks to Own Forever. These picks are free today! Just click here now to uncover the three companies we love.
The article Could Facebook Adopt a New Revenue Model? originally appeared on Fool.com.Daniel Sparks has no position in any stocks mentioned. The Motley Fool recommends Facebook. The Motley Fool owns shares of Facebook. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
Copyright © 1995 - 2014 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.