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

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

#94

Post by mathattack »

nwh wrote: post #60

400,000,000 active users [0] 16,000,000,000 USD ---- $40 per user That's an incredible cost. We can assume Facebook is paying for the userbase, the app itself and it's infrastructure would basically run itself. It's less appealing when you realise that there's probably a miniscule fraction of WhatsApp users that don't have a Facebook account. > WhatsApp will remain autonomous and operate independently. You can contin…

I don't think they're buying it per current user. It's either about paying for future users (granted, triple the user base and it's still a lot) or a game of defense against a potential competitor.

They bought the photo company at what seemed an outrageous amount in part to co-opt a competitor. In the end it was profitable. They alter their feed to look more Twitter-like, encouraging people to avoid the competitor. I see this as defense too. It isn't about new users, it's about corporate competition.

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

#95

Post by theboss »

nwh wrote: post #60

400,000,000 active users [0] 16,000,000,000 USD ---- $40 per user That's an incredible cost. We can assume Facebook is paying for the userbase, the app itself and it's infrastructure would basically run itself. It's less appealing when you realise that there's probably a miniscule fraction of WhatsApp users that don't have a Facebook account. > WhatsApp will remain autonomous and operate independently. You can contin…

Is it possible that this is also for user retention rather than solely adding new users?

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

#97

Post by dba7dba »

psbp wrote: post #75
nwh wrote: post #60

400,000,000 active users [0] 16,000,000,000 USD ---- $40 per user That's an incredible cost. We can assume Facebook is paying for the userbase, the app itself and it's infrastructure would basically run itself. It's less appealing when you realise that there's probably a miniscule fraction of WhatsApp users that don't have a Facebook account. > WhatsApp will remain autonomous and operate independently. You can contin…

Or facebook is trying to trivialize and destroy the startup market.

the startup market of other messenger apps? The ones that are around are already big and profitable (KakaoTalk, LINE etc).

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

#98

Post by eitland »

kevincrane wrote: post #59
techaddict009 wrote: post #37

Earlier quoted context omitted.

Seems like by tomorrow this blog post well get deleted from the blog!!

WhatsApp seems to think themselves above ads still. If they're lucky it'll stay that way. http://blog.whatsapp.com/index.php/2014/02/facebook/

They have a working business model with a whole lot of happy customers that pay yearly.

I really hope to be able to pay for WhatsApp next year as well, I really loved it for what it was.

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

#99

Post by midas007 »

asselinpaul wrote: post #58
psbp wrote: post #25

Earlier quoted context omitted.

They both seem ridiculous.

no, I can see how Snapchat is unique and fresh. WhatsApp brings nothing new to the table.

ARPU vs CTLV doesn't compute.

This is like déjà vu, circa 2000 when I was watching the {{decent}}.corp ticker hitting $60/share after 3 splits.

If anything I don't feel that Justin Frankel and "Mr. Wonderful" made out like bandits as much now.

ProTip to new startup people: now is not the time for your magic mobile IM app. Most potential acquirers' demand is likely sated, making the value of the remaining players in the space effectively zilch, apart from lower cost acquihires and fodder for opening pitch jokes.

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