Wednesday, 26 February 2014

Is Facebook a threat to Google?


Facebook’s $16 billion acquisition of globally-popular messaging service WhatsApp (which may end up being $19 billion down the road) has shaken up the tech world. But, should Google be the tech giant shaking the most?

In some ways, Facebook’s future may be written in Google’s past. Google morphed from a search engine into one of the world’s largest technology companies, offering a diverse suite of products including software, email, and content aggregation. Likewise, Facebook started as a narrowly-defined website – a social network for college students – but is now branching out as it acquires other companies.

CNBC contributor Gina Sanchez, founder of Chantico Global, says Facebook’s acquisition of WhatsApp and its 450 million users – particularly overseas – is a long-term challenge of Google’s dominance.

“One of the things it does is it opens up the global market which is a place where Facebook really hasn't had a big presence,” says Sanchez. “It keeps the sort of teens and tweens engaged to sort of graduate them up to Facebook. So, I do think this is hugely important.”

“I think Facebook is mounting a serious campaign against Google and it can't be ignored.”

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