Facebook CEO Mark Zuckerberg wants to unify his messaging platforms by 2020. Reuters
Facebook CEO Mark Zuckerberg wants to unify his messaging platforms by 2020. Reuters
Facebook CEO Mark Zuckerberg wants to unify his messaging platforms by 2020. Reuters
Facebook CEO Mark Zuckerberg wants to unify his messaging platforms by 2020. Reuters

The WhatsApp, Instagram and Messenger merger: What's really in it for Facebook?


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It seems hard to believe, but when telephones were first introduced in the 19th century they only worked in pairs. For every person you wished to talk to, you needed a separate phone.

Fortunately, a network was eventually built that allowed global communication to flourish, but in the world of instant messaging, walled gardens still inhibit free and easy communication. Services such as Apple’s iMessage, Microsoft’s Skype and Google’s Hangouts work strictly independently of one another. WhatsApp, the world’s biggest messaging app, bought by Facebook for $19 billion in 2014, can’t even send messages to Facebook’s own Messenger application, or indeed to users of Instagram, Facebook’s photo-sharing app.

But change is afoot. By the year 2020, Facebook aims to merge the messaging facilities of all three services, while keeping the apps themselves separate. "Fast, simple, reliable," said a company spokesman. "We want to build the best messaging experiences we can." But Facebook rarely makes decisions for purely altruistic reasons, so what's in it for them? And is it as beneficial to users as it's making out?

Facebook's reputation has taken a pummelling of late. The Cambridge Analytica scandal, in which the data of 87 million Facebook users was harvested by a political consultancy firm, caused confidence in the company's security to fall, according to one study, from 80 per cent of users to just 27 per cent.

In addition, growing awareness of how Facebook mines personal data to serve relevant advertisements has led to growing disquiet. It’s rare to stumble across any positive Facebook news these days; even last week, a class-action lawsuit against the firm revealed that the company had, over a number of years, allowed and encouraged children to unwittingly spend their parents’ money in online games.

In response to the ongoing public relations disaster, founder and CEO Mark Zuckerberg penned a piece for the Wall Street Journal last week in an attempt to defend the company. "Billions of people get a free service to stay connected to the people they care about and to express themselves," he wrote. "Small businesses around the world get access to tools to grow and create jobs."

Zuckerberg’s decision to merge his empire’s messaging services certainly fulfils his often-stated dream of connecting the world, but many employees of Instagram and WhatsApp are unhappy with the move – not least because Zuckerberg promised them independence.

“We need to [build] on Instagram’s strengths and features, rather than just trying to integrate everything into Facebook," he said when Instagram was purchased in 2012. WhatsApp’s co-founders, Brian Acton and Jan Koum, were reassured that their strict no-advertisement policy would be respected by Facebook, but last year it was announced that adverts would be introduced to extract revenue from a platform that makes very little money. In response, Koum and Acton left the company. So did Kevin Systrom and Mike Krieger, co-founders of Instagram.

The three social media platforms will continue to operate as standalone apps. EPA
The three social media platforms will continue to operate as standalone apps. EPA

The merger makes sense in the context of Facebook’s waning popularity. Zuckerberg sees messaging as critical to the company’s future, and by letting people send messages to WhatsApp and Instagram contacts from within Facebook, they will be kept on the platform for longer. But the differing stances on privacy between the services create a number of technical and moral difficulties.

WhatsApp is proud of the end-to-end encryption that prevents its messages from being read by anyone except the sender and the recipient. Instagram and Messenger currently have no such protection, and while Facebook has vowed to give them end-to-end encryption as part of the merger, other critical differences remain.

Instagram and WhatsApp can be used anonymously, but Facebook requires you to use your real name. WhatsApp requires a functioning mobile phone number to operate, while the others do not. Authorities in Europe have long expressed concern over Facebook’s attempts to pool data across its services, but the likely merging of names, pseudonyms, phone numbers, Facebook profile information and other metadata (such as location) is of great value to Facebook. It doesn’t need to be able to read your messages to serve relevant adverts to you across all three platforms. Such information can be gleaned in many other ways.

People consistently tell us that if they're going to see ads, they want them to be relevant. That means we need to understand what they're interested in.

But many WhatsApp users who are accustomed to an advert-free experience will resent adverts following them across from Facebook. They may also resent the inevitable cross-platform deluge of spam, misinformation and unwanted communication; it is, after all, possible to be too connected to each other. Some may protest by leaving the platform for other apps such as Signal or Telegram – but if one’s friends aren’t using them, what use are they? The sheer number of people using these platforms makes them a captive audience.

“Ultimately, the business model of Facebook and other social networks depends on trust,” said Germany's Minister of Justice, Katarina Barley, at the weekend. “Lately, that is a commodity that has been in short supply.” Calls were made last week by a number of American advocacy groups to split Facebook from WhatsApp and Instagram based on what they believe is an abuse of its position in the market. This view may well be shared by the nominee for US Attorney General, William Barr, based on comments he made in recent testimony before Congress. “I think a lot of people wonder [how] these big behemoths have taken shape in Silicon Valley,” he said.

But that’s perhaps the most cunning part of Facebook’s move: by merging its messaging services, it makes itself harder to break apart. Facebook is, in some ways, so large that it can do what it wants. The 2.6 billion people who use its services to communicate are likely to continue to dance to its tune.

The 12 Syrian entities delisted by UK 

Ministry of Interior
Ministry of Defence
General Intelligence Directorate
Air Force Intelligence Agency
Political Security Directorate
Syrian National Security Bureau
Military Intelligence Directorate
Army Supply Bureau
General Organisation of Radio and TV
Al Watan newspaper
Cham Press TV
Sama TV

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JOKE'S%20ON%20YOU
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A new relationship with the old country

Treaty of Friendship between the United Kingdom of Great Britain and Northern Ireland and the United Arab Emirates

The United kingdom of Great Britain and Northern Ireland and the United Arab Emirates; Considering that the United Arab Emirates has assumed full responsibility as a sovereign and independent State; Determined that the long-standing and traditional relations of close friendship and cooperation between their peoples shall continue; Desiring to give expression to this intention in the form of a Treaty Friendship; Have agreed as follows:

ARTICLE 1 The relations between the United Kingdom of Great Britain and Northern Ireland and the United Arab Emirates shall be governed by a spirit of close friendship. In recognition of this, the Contracting Parties, conscious of their common interest in the peace and stability of the region, shall: (a) consult together on matters of mutual concern in time of need; (b) settle all their disputes by peaceful means in conformity with the provisions of the Charter of the United Nations.

ARTICLE 2 The Contracting Parties shall encourage education, scientific and cultural cooperation between the two States in accordance with arrangements to be agreed. Such arrangements shall cover among other things: (a) the promotion of mutual understanding of their respective cultures, civilisations and languages, the promotion of contacts among professional bodies, universities and cultural institutions; (c) the encouragement of technical, scientific and cultural exchanges.

ARTICLE 3 The Contracting Parties shall maintain the close relationship already existing between them in the field of trade and commerce. Representatives of the Contracting Parties shall meet from time to time to consider means by which such relations can be further developed and strengthened, including the possibility of concluding treaties or agreements on matters of mutual concern.

ARTICLE 4 This Treaty shall enter into force on today’s date and shall remain in force for a period of ten years. Unless twelve months before the expiry of the said period of ten years either Contracting Party shall have given notice to the other of its intention to terminate the Treaty, this Treaty shall remain in force thereafter until the expiry of twelve months from the date on which notice of such intention is given.

IN WITNESS WHEREOF the undersigned have signed this Treaty.

DONE in duplicate at Dubai the second day of December 1971AD, corresponding to the fifteenth day of Shawwal 1391H, in the English and Arabic languages, both texts being equally authoritative.

Signed

Geoffrey Arthur  Sheikh Zayed

Avatar: Fire and Ash

Director: James Cameron

Starring: Sam Worthington, Sigourney Weaver, Zoe Saldana

Rating: 4.5/5

MATCH INFO

Everton 2 (Tosun 9', Doucoure 93')

Rotherham United 1 (Olosunde 56')

Man of the Match Olosunde  (Rotherham)

Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

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500 People from Gaza enter France

115 Special programme for artists

25   Evacuation of injured and sick

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The specs

Engine: 6.2-litre supercharged V8

Power: 712hp at 6,100rpm

Torque: 881Nm at 4,800rpm

Transmission: 8-speed auto

Fuel consumption: 19.6 l/100km

Price: Dh380,000

On sale: now 

Wicked: For Good

Director: Jon M Chu

Starring: Ariana Grande, Cynthia Erivo, Jonathan Bailey, Jeff Goldblum, Michelle Yeoh, Ethan Slater

Rating: 4/5

Three tips from La Perle's performers

1 The kind of water athletes drink is important. Gwilym Hooson, a 28-year-old British performer who is currently recovering from knee surgery, found that out when the company was still in Studio City, training for 12 hours a day. “The physio team was like: ‘Why is everyone getting cramps?’ And then they realised we had to add salt and sugar to the water,” he says.

2 A little chocolate is a good thing. “It’s emergency energy,” says Craig Paul Smith, La Perle’s head coach and former Cirque du Soleil performer, gesturing to an almost-empty open box of mini chocolate bars on his desk backstage.

3 Take chances, says Young, who has worked all over the world, including most recently at Dragone’s show in China. “Every time we go out of our comfort zone, we learn a lot about ourselves,” she says.

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If you go

The flights

Etihad flies direct from Abu Dhabi to San Francisco from Dh5,760 return including taxes. 

The car

Etihad Guest members get a 10 per cent worldwide discount when booking with Hertz, as well as earning miles on their rentals. A week's car hire costs from Dh1,500 including taxes.

The hotels

Along the route, Motel 6 (www.motel6.com) offers good value and comfort, with rooms from $55 (Dh202) per night including taxes. In Portland, the Jupiter Hotel (https://jupiterhotel.com/) has rooms from $165 (Dh606) per night including taxes. The Society Hotel https://thesocietyhotel.com/ has rooms from $130 (Dh478) per night including taxes. 

More info

To keep up with constant developments in Portland, visit www.travelportland.com. Good guidebooks include the Lonely Planet guides to Northern California and Washington, Oregon & the Pacific Northwest. 

 

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