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

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41–50 of 831 posts

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

#41

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

I agree. It seems like just a waste of money. Maybe Facebook shoud just give money to users? I might even use Mark's site the right way; with my real name and honest profile. Or, just give more to the right charities?

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

#44
16B? That's a B, people. While there are a lot of whatsapp users (and people have to pay to use it), wow, that's still a lot of money! How can they justify revenue that way? How can any company ever consider such acquisition? I don't even think Google can even make 16B like this.

See this discussion: http://www.quora.com/WhatsApp-Messenger/How-much-revenue-is-...

$20M net revenue, at most, right? With future expansion and side commercial services, I make $1B per year, fine. But that's after tax. So WhatsApp must make A LOT more than $1B. I really don't see anything else. But that's only when WhatsApp can continue to grow and actually gain that much of commercial income. Someone who have dealt with acquisition tells me how 16B is the right number. I would pay $5B just because WhatsApp is well-established.

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

#47
How many active users does WhatsApp have? I'm trying to put this in perspective with the Instagram purchase and the Snapchat offer... finding it very difficult to understand the math behind this acquisition, although it is obviously linked to the recent plays with Messenger.

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

#49

That is a LOT of money. That being said, I use WhatsApp every day to chat with my friends around the world and it's really excellent. I know it's used a lot in other parts of the world even more, so I doubt this purchase is focused on US markets. It seems that every one of my Arab friends uses WhatsApp to talk to their families back home (and they use it at home, too). I don't know about other regions.

WhassApp is the standard in Mexico. It replaced Windows Live (MSN) Messenger after they killed it by trying to make everybody switching to Skype and the interest of the people shifted to mobile.

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

#50

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

You could argue the same about Instagram, but perhaps this is defense. That said, it's at something like a third of Facebook's market cap.
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