The price could push up toward a billion dollars.
According to a source who knows about the discussions, the WhatsApp team is trying to get Google to pay a higher price. It is also thought not to be the first time Google has made overtures like this.
Earlier rumors suggested Facebook was interested in the small company.
WhatsApp is a platform-agnostic messaging service that behaves a little like SMSs—but using a smartphone's data channel, so it doesn't incur SMS fees from the carrier.
iMessage serves a similar function across Apple's entire range of computers. Facebook's Messages service has been promoted by Facebook for some time, and with the new Home Android front end Facebook's messaging systems will become even more prominent.
Is the SMS doomed because of systems like WhatsApp or iMessage, do you think? Will you miss it (and its excessive network fees)?
[Image: Flickr user Murasam3]