Facebook Chairman and CEO Mark Zuckerberg testifies at a House Financial Services Committee hearing examining the company’s plan to launch a digital currency on Capitol Hill in Washington, U.S., October 23, 2019.
Erin Scott | Reuters
Mark Zuckerberg defended Facebook’s acquisitions of Instagram and WhatsApp in prepared remarks released Tuesday, ahead of his testimony before the House Antitrust Subcommittee on Wednesday.
“Facebook has made Instagram and WhatsApp successful as part of our family of apps,” Zuckerberg said in his prepared remarks.
“Instagram and WhatsApp have been able to grow and operate their services using Facebook’s bespoke, lower-cost infrastructure and tackle spam and harmful content with Facebook’s integrity teams and technology.”
Facebook acquired Instagram for $1 billion in 2012. It acquired WhatsApp for $19 billion in 2014.
Zuckerberg argued that Instagram benefited from its acquisition by using Facebook’s technology to stabilize its infrastructure and remove spam. Facebook’s acquisition of WhatsApp, meanwhile, allowed it to make the secure messaging app free to users, he said. WhatsApp also used Facebook’s technology to develop video and voice-calling features, Zuckerberg said.
“These benefits came about as a result of our acquisition of those companies, and would not have happened had we not made those acquisitions,” Zuckerberg said. “We have developed new products for Instagram and WhatsApp, and we have learned from those companies to bring new ideas to Facebook. The end result is better services that provide more value to people and advertisers, which is a core goal of Facebook’s acquisition strategy.”
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