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

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251–260 of 831 posts

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

#251
post #12

They might as well go ahead and buy WeChat as well.

Actually, now that's an aquire I think would be worth $16/19B. WeChat is f-in huge in China. And they use it for everything, including payments.

WeChat is made by Tencent, who's market cap is $143B.

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

#252
crazy to think WhatsApp is worth almost as much as Netflix or Tsla. I think they overpaid. Will short the stock at open tomorrow. I was long $25 to $55, but this kind of recklessness with a young management team is destroying shareholder value.

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

#253
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…

Pretty amazing that this is precisely what Microsoft paid for Hotmail in 1998 : $400 million for 10 million users = $40 / User. [1] The parallels are striking : Whatsapp is to messaging today what Hotmail was to messaging in the late '90s. [1] http://news.cnet.com/2100-1033-206717.html

You mean almost at the height of the dotcom bubble? Maybe that should say something about this acquisition.

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

#254

Earlier quoted context omitted.

im curious, what do americans use instead?

same old texting.

@kayoone No it's NOT free. US is just slow picking up new tech. It wasn't too long ago when Verizon was charging $10/month for 100 or 500 texts a month, with MASSIVE over the limit usage fee. The smart/young ones alternative but generally most don't care. And while most complain about paying $ for service that may not get used, they continue to pay, because they have the $.

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

#255
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…

Maybe they're not just paying for users. Maybe they're paying for the strong infrastructure of the messenger and the talent associated.

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

#256

How did WhatsApp gain traction? Presumably most of their users already use facebook, which offers the same messaging functionality as WhatsApp. So why do people use WhatsApp instead of Facebook for messaging?

IIRC, they used to market the app as "free SMS service", which, I believe, was a key component in getting huge amount of users in 3rd countries.

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

#258

Earlier quoted context omitted.

How'd you get your friends to move over to Telegram? I'm trying to get that ball moving with my circle of friends.

Better yet, how do we get people to move to something distributed so that Facebook (or Google or anyone else) cannot acquire the service. If we just move to another decentralized messaging service, that service will eventually get gobbled up as well, and we'll have to rinse and repeat.

Even distributed protocols aren't a silver bullet. Embrace and extend can make short work of that. As can joining standards boards and playing political games. As can simply turning off federation.

Sometimes I think HTTP and SMTP are only limping along because there's a large enough enterprise base that doesn't want to see any changes at all.

Maybe that presents a defense (get your competing protocol entrenched in corporate IT), but not many technologies get birthed out to the consumer space from the enterprise space the way http and smtp did.

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

#259
post #194

Earlier quoted context omitted.

Except that people weren't paying to get a Hotmail account. WhatsApp users pay $1/year, so their revenues are around that of Twitter's.

you mean $1 once when they first install it? the 'pay this amount' was a well known scam message

That changed. The app is now[0] free and it's $1/year, in every platform.

[0]: http://www.theverge.com/2012/12/20/3787472/whatsapp-for-ios-...

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

#260
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).

They are the de-facto messaging service in the rest of the world (except for China).

FWIW, I'm in the UK, and I'm not aware of anyone who uses it here, either. I too have heard the name mentioned once or twice in the past, usually for undesirable reasons related to things like security or privacy. Even looking them up today, I don't quite see the attraction: what is the USP here?

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