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

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111–120 of 831 posts

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

#111
post #61
post #27

$16B for something I've never even heard of. I feel like I'm living under a pile of rocks.

Don't feel bad; no one really uses them in the US (except us foreigners to communicate with friends and family abroad). They are the de-facto messaging service in the rest of the world (except for China).

Not true. KakaoTalk is big in S Korea. LINE is big in Japan. Quick check shows of 300 million registered LINE users and 50 million are in Japan.

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

#115
post #97
post #75

Earlier quoted context omitted.

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).

The bubble spreads across all tech startups. Before it was whether your product could be viral enough to match snapchat's $1 billion, now it's whatsapp's $16 billion.

This creates a very unhealthy attitude around tech startups that will have a cascading effect on the entire industry. It's like a hegemonic military policy. The strategy doesn't matter, as long as you have a big stick.

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

#116
In order to keep up FB's stock valuation the need to show continued growth which slowing at a vary rapid rate. WhatsApp is adding 1 million new users per day. That's what zuck bought. And the ROI? Will be the market applauding FBs growth and driving the stock price to $100.

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

#117
post #40

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

I'm convinced that Facebook is just investing in the market for ridiculously high purchases, artificially inflating the market.

What's the point in that from Facebook's perspective? Encouraging others to start competing with Facebook too?

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

#118
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…

>They bought the photo company at what seemed an outrageous amount in part to co-opt a competitor. In the end it was profitable.

Are you talking about Instagram? Unless I've been living under a rock I haven't heard or read anything that says they're profitable.

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

#120
post #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 expansio…

Facebook is trying to own mobile, period. That's all that matters to them and they are doing whatever they can to do it now, when it is still relatively early.
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