Acquired by Facebook for a whopping price tag of $22 billion, WhatsApp is one of the key sources of growth for the social networking giant. WhatsApp’s user base has grown exponentially over the last few years, and recently surpassed 700 million. While Facebook currently generates negligible revenues from WhatsApp, we believe this business could contribute around $7 billion annual revenue over the long-run. We have derived this estimate based on user growth forecasts and on the ARPU that Facebook could derive from WhatsApp in the long-run....
