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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

#152
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).

Well going by itunes top 20 free social networking apps, you still have kik, tango, oovoo, & zello.

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

#153
Am I the only one upset with this? I don't use Facebook - haven't and never will - because I hate how I and all my data will become their product on registration. Sure, Whatsapp has its quirks being proprietary and all, but now, I am basically doomed. Whatsapp says they will stick to their core and stay independent, but I have 16 billion reasons to believe otherwise. The sad part is that due to Whatsapp, I can't escape my doom because EVERYONE I contact daily uses Whatsapp. I would basically kill myself socially if I were to delete Whatsapp. I really, really hope Whatsapp stays Whatsapp but knowing Facebook we are fked either way.

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

#154

Earlier quoted context omitted.

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 t…

I want to underline that last point. Doing something that is fashionable is a bad idea. Doing something that was fashionable and whose big players are now getting snapped up is a terrible idea.

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

#155

The fact that FB chose to pay $12BN in stock for this tells you something about what they think of their current valuation.

That's a lot of money for an app with relatively little lock-in and a $0.70 (maximum) ARPU.

The lock-in is the network effect, and well, if you're aiming for 1-1.5B users (which can be served with virtually no employment and hosting costs) you're looking at 1B $ yearly profit.

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

#159

Even though at the time it seemed ridiculous I could understand paying $1bn for Instagram. Photos is Facebook's most used product and Instagram was stealing users photos on mobile. $16bn for WhatsApp I just can't understand. Facebook has a brilliant messaging app. Lots of people use it - even people who use WhatsApp continue to use Facebook Messenger.

1 million new users a day and most likely in countries where Facebook is not growing as quickly...
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