Google Inc (GOOG) Getting the Message: This Acquisition Will Cost You

Google Inc (NASDAQ:GOOG) has developed a reputation for getting what it wants when it comes to acquisitions. The company, on the one hand, streamlines itself by cutting loose certain units (like DailyDeal) and jettisoning  some parts of other units (see the very-slimmed-down Motorola Mobility). This time around, however, this latest empire-building effort by Google is facing some resistance  from those being acquired.

This target knows it’s popular and knows it has wide appeal, so it’s driving a hard bargain – perhaps trying to be bought for  potential value rather than current value? Google Inc (NASDAQ:GOOG) has been reportedly working for the last several weeks to purchase WhatsApp – a popular cross-platform mobile messaging application – but is finding  that the company honchos at WhatsApp are  playing hardball with Google, driving up the price of the company. As negotiations have progressed, it is rumored that the price is currently creeping toward $1 billion.

Is that such a big deal for a company like Google Inc (NASDAQ:GOOG)? Maybe, but it could be worth it, as Google has been very slow to develop its Google Babel platform with a messaging presence. And why not WhatsApp to accelerate that development? After all, the app is the No. 1 messaging app in more than 100 countries, according to market surveys, and about 750 mobile networks worldwide. And with other similar messaging platforms gaining traction – including LINE and MessageMe among the more recent U.S. market entries – Google’s issues with launching Babel on a full scale  is likely leaving it behind if it tries to work on a native application.

What is the big deal about WhatsAp, you ight ask? WhatsApp is an instant messaging app that allows users to privately chat, share videos and pictures with any friend or family member on any mobile operating system – whether the user or friends are on Android, iOS, BlackBerry or Windows Phone and use Yahoo!, Skype, BlackBerry Messenger, Facebook Messenger, Google Inc (NASDAQ:GOOG)’s Google Talk or virtually any other chat platform. The app requires only a 99-cent annual subscription to be ad-free, and reportedly the company  made about $100 million in revenue in the past year – though that number is unconfirmed.

How does WhatsApp work anyway?

Check out the following video to find out: