Facebook Inc. made an official statement, revealing that it hired the President of EBays PayPal unit – Mr. David Marcus to head its mobile messaging division. This move of the social network is due to the companys attempt to become more competitive and expand its reach in what is said to be a fast-growing business.
As reported by the Financial Times, the Facebook Inc. said in its statement: “We’re excited by the potential to continue developing great new messaging experiences that better serve the Facebook community and reach even more people, and David will be leading these efforts.”
As announced by Ebay Inc. in its statement, Mr. David Marcus is going to leave the company on June 27th for taking charge of Facebooks expansion into mobile messaging business by heading the companys Messenger application. Mrs. Vanessa Chan, who is a spokeswoman of Facebook Inc., said that Mr. Marcus will report to the companys Chief Executive Officer Mr. Mark Zuckerberg as well as to Mr. Javier Olivan.
The news of the appointment comes at a moment when the social media company is preparing to release its Slingshot application that provides users with the opportunity to send rapid fire photos and videos that disappear after being sent. The goal of the company is to keep its younger audience interested and distract it from competitors social media applications.
According to a person familiar with the issue, who asked not to be named because the information has not yet been disclosed, Facebooks Messenger application does not make any revenue currently. That is the reason why one of the main responsibilities of Mr. Marcus is considered finding an appropriate business model for the unit.
The Messenger service of the social network is said to be responsible for transferring 12 billion messages on a daily basis and has about 200 million subscribers on a monthly basis. This makes the application a “core” one considering the fact that the company is seeking to increase its number of users all over the world.
As reported by Bloomberg, the company said: “Messaging is a core part of Facebooks service and key to achieving our mission of making the world more open and connected.”
Facebook Inc. was 0.61% up to close at 62.88 dollars per share yesterday, marking a one-year change of +169.98%. According to the information published on CNN Money, the 39 analysts offering 12-month price forecasts for Facebook Inc. have a median target of 80.00, with a high estimate of 90.00 and a low estimate of 60.00. The median estimate represents a +27.23% increase from the last price of 62.88.
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