Viber

Internet calls from the phone

Viber was founded in February 2010 by Talmon Marco, Igor Magazinnik, Sani Maroli and Ofer Smocha, according to Calcalist. Marco's three partners came from iMesh, where Marco had briefly served as president. The entrepreneurs wanted to make internet calling on a mobile phone simpler. Marco described the idea after he tried to make a call using software and an internet phone exchange: open an app and start talking. The company operated with centers in Israel, Belarus and Cyprus. At the time of the sale, Globes described a company registered in Cyprus with a development center in Israel. The Israeli link lies in the entrepreneurs and the development work, while the legal incorporation of the company that was acquired was outside Israel.

What the app provided

Viber let users make calls and exchange messages over an internet connection. Calls between users of the service did not require using the phone carrier's regular international call route. Later, versions for personal computers were also offered, along with support for different phone operating systems. In 2014 Globes described the use of messages and recognizing the device on which the call takes place. The service competed with other communication apps, including Skype and WhatsApp. Distribution on phones and computers was part of the effort to offer a communication service people could use with their contacts, even when they are in different countries and connected through different providers.

Milestone: millions of active users

Rakuten's announcement in February 2014 described about 280 million registered users and about 100 million monthly active users. Globes reported at the same time a base of more than 300 million users, and Calcalist stressed the difference between signing up and monthly use. A user who installed the service in the past is not necessarily someone who keeps talking on it. The monthly usage figures show that the service was used by a wide audience, beyond the first download. The Israeli entrepreneurs' app reached users in many countries and was an everyday tool for calls and messages for them.

Agreement in February, completion in March

On 14 February 2014, Japan's Rakuten announced an agreement to acquire all of Viber's shares and invest in new shares, for a planned amount of about $900 million. On 14 March it announced that the deal had been completed on 11 March 2014, with a total investment of $905 million: $797 million for existing shares and $108 million for new shares. According to the announcement, the investment includes the $900 million acquisition cost plus an extra $5 million for new shares. According to a Calcalist report from February 2014, $600 million was to be paid in cash when the deal closed, and the rest in two payments of about $150 million each, subject to meeting milestones. The total amount also included investment in new shares, not only the purchase of shares from the previous shareholders. Rakuten wanted to connect the app's audience to its digital content and commerce services, and the company became a wholly owned subsidiary.

Legacy

The service continues under the name Rakuten Viber and offers voice calls, video calls and messages. According to the company's website, hundreds of millions of people use the service every month. Viber continued as a brand and a product after the change of ownership, under a Japanese internet group. Its history links Israeli entrepreneurs, development in several countries and legal registration in Cyprus. It also shows how a communication app can build a wide user base without being a phone network operator. Its continuity can be seen in a service that can be downloaded and used, not only in the historical sale.