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Facebook Buying WhatsApp for $16B in Cash and Stock Plus $3B in RSUs

techcrunch.com

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Re: Facebook Buying WhatsApp for $16B in Cash and Stock Plus $3B in RSUs

#21

Post by traskjd »

higherpurpose wrote: post #4

Such a waste. Most Whatsapp users already use Facebook in parallel. Facebook will never see a ROI on this acquisition. Not even close.

Not saying this is the absolute case, but sometimes these things are defensive plays (e.g. instagram was starting to control more % of photographs - something that is pivotal to Facebook's continued success).

Sometimes the ROI is in retaining your value and not dying, as opposed to getting $$ out of the investment.

I'm guessing if you want to be the #1 social network for a long time, you don't want people being social outside your platform. I'd put this purchase in the defensive bucket.

Re: Facebook Buying WhatsApp for $16B in Cash and Stock Plus $3B in RSUs

#23

Post by Karunamon »

higherpurpose wrote: post #4

Such a waste. Most Whatsapp users already use Facebook in parallel. Facebook will never see a ROI on this acquisition. Not even close.

What makes you think that? Facebook already has its own messaging platform, while Whatsapp advertises themselves as a direct replacement for SMS.

Re: Facebook Buying WhatsApp for $16B in Cash and Stock Plus $3B in RSUs

#24

Post by basilbthoppil »

higherpurpose wrote: post #4

Such a waste. Most Whatsapp users already use Facebook in parallel. Facebook will never see a ROI on this acquisition. Not even close.

More than just number of users, I think now its about number of man hours spent on facebook products.

Re: Facebook Buying WhatsApp for $16B in Cash and Stock Plus $3B in RSUs

#26

Post by robryan »

falsestprophet wrote: post #15

Some interesting numbers: WhatsApp raised only $8 million (from Sequoia in 2011 http://www.crunchbase.com/company/whatsapp ). 19B sale price is about 10% of Facebook's 173B valuation. At 400 million, WhatsApp has more users than, the world's third most populous country , the United States has residents.

Wow, that sure is going to be a massive result for Sequoia.

Re: Facebook Buying WhatsApp for $16B in Cash and Stock Plus $3B in RSUs

#28

Post by roc »

minimaxir wrote: post #13
higherpurpose wrote: post #4

Such a waste. Most Whatsapp users already use Facebook in parallel. Facebook will never see a ROI on this acquisition. Not even close.

I wouldn't think of this from a ROI perspective. Facebook might be trying to go for the monopoly on mobile messaging. And once Facebook controls that, they can do anything.

Or they simply don't want/can't afford seeing large chunks of users move their usage away.

Re: Facebook Buying WhatsApp for $16B in Cash and Stock Plus $3B in RSUs

#29

Post by antr »

falsestprophet wrote: post #15

Some interesting numbers: WhatsApp raised only $8 million (from Sequoia in 2011 http://www.crunchbase.com/company/whatsapp ). 19B sale price is about 10% of Facebook's 173B valuation. At 400 million, WhatsApp has more users than, the world's third most populous country , the United States has residents.

It just shows that all those Series A/B rounds at $15m-$20m won't buy you traction nor success. Or as many VCs would say "the market wasn't ready"
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