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

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611–620 of 831 posts

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

#611

Maybe I'm not down with the kids, but I'm not understanding what any of these message apps offer over plain old fashioned email. It alerts me on my phone, it works on my computer, it sends to groups, everyone already has it, it sends photos, it stores a history of all my past communications in one place accessible from anywhere. It's not completely secure but at least you don't have to trust any foreign corporation (…

They did no marketing. $0

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

#612
post #594

Earlier quoted context omitted.

I mean, if you assume only 10% of that value is going to employees, then you need only half a percent (0.5%) of that to get a $800k bonus. If you've only been there 2-3 years, that's a substantial bonus that pushes your pay above market rate.

You dropped a zero. 16B * 10% * .5% = 8 Million

And they only have 55 employees...

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

#614
I think this one will be the turning point for Facebook, remember that M & A in the corporate world have history of senseless and expensive moves that end up bankrupting the company who buy it, $40 per user is an extremely risky bet when Facebook themselves can't even monetize it's own userbase. This appears to be a road to become as big as possible so that you can't possibly appear to fail when faced with companies like Microsoft, Google, Yahoo who are after profitability aligned with their own products.

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

#615
post #505

Earlier quoted context omitted.

>>> It's gonna be one tough mission for FB to convince WhatsApp users they're not gonna be playing around with their data. It's much less relevant if you step outside the HN.

I don't know if that's true. How do you explain the success of WhatsApp when FB exists?

Well, do you really think a regular person will care a lot about storing data? Ok, maybe after Snowden's leaks they will give a second thought about sharing intimate pictures but other than that... For us, HNers, it's hard to understand 'a regular person' because we are far from.

Speaking of reasons, I would say doing one thing and doing it well.

After FB has invested all that money, their messenger app is still behind. Sync issue was a big one. Up until recently, FB messages wouldn't reach my phone or they would reach hours after being sent. And I don't live in a forest in Africa.

Second, I find the UX poor. It's hard to point out but using e.g. WhatsApp just feels more... natural. Don't know why.

Also, I think the fact that your phone book is the first class citizen is a big one. You don't need to add, confirm anything. It's just already there. And that makes a perfect sense. If you have a phone book with all the contacts, why would you need a new list of contacts.

Basically, WhatsApp is just SMS on steroids. Taking a proven technology and improving it. That's also innovation.

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

#616
post #615

Earlier quoted context omitted.

I don't know if that's true. How do you explain the success of WhatsApp when FB exists?

Well, do you really think a regular person will care a lot about storing data? Ok, maybe after Snowden's leaks they will give a second thought about sharing intimate pictures but other than that... For us, HNers, it's hard to understand 'a regular person' because we are far from. Speaking of reasons, I would say doing one thing and doing it well. After FB has invested all that money, their messenger app is still behi…

I think people care more about it than you think and the long term is they will care more. It's not just needs that talk about "FB stalking" or think LinkedIn is creepy.

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

#617
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

The parallels are striking : Whatsapp is to messaging today what Hotmail was to messaging in the late '90s.

With 10 million users, you could grow 100x, or more.

With 400 million users, 100x growth is harder.

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

#618
post #524

Earlier quoted context omitted.

That is a very good point, even if you don't immediately realize the deeper implications. :) In India, you generally pay per text message - so if you can convince even 3 of your close friends to start using Whatsapp, you save (say) 20% of your phone bill. Here in US, if you are going to send more than a few texts a month, you are going to be paying 20 USD. So there is no real monetary incentive (initially) for you an…

So why didn't Indian telecoms implement all-you-can-eat messaging to stop the erosion of users moving to WhatsApp?

They did for prices ranging from $1 - $2 per month. But text messaging does not do groups remotely as well as Whatsapp does.

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

#619
post #510

Earlier quoted context omitted.

Yes, here's a quote from the FreeBSD Foundation's July 2013 newsletter: At WhatsApp we leverage FreeBSD and Erlang to provide industry record uptime. The ability to scale linearly on commodity hardware has allowed WhatsApp to keep our serving costs low. These days we run anywhere between 2 million and 3 million concurrent TCP connections on a single FreeBSD server... https://www.freebsdfoundation.org/press/2013Jul-ne…

Wow! 2-3 million concurrent TCP connections? I just discovered C10K last year :( Is this a fundamental difference between thread based networking and evented network IO? What am I missing?

Not exactly. While there are ways to conflate a connection with a thread, these are not always fixed pairs. Generally, it depends on the kind of connection activity and a bit on which operating system. Event based IO is simply pushing information that kernel schedulers already use into user space. The trade-offs really depend on where you need control the most.

Many kernels can do a pretty good job at general purpose networking but at this scale you tend to care about the details and so more of these systems tend to push the decision making to the program using APIs like epoll & kqueue (Linux and *BSD respectively). Keeping this information transfer cheap for millions of sockets is not as trivial as just using the API but it's a necessary step to control overhead.

Whether your user space code uses threads in places to get work done is often misunderstood as well since thread doesn't always mean a single logical thread in a program. Erlang, in SMP mode, uses threads to run it's own process schedulers (much like an operating system). The operation of these schedulers is handled in such a way that IO can efficiently block a process and the scheduler can move onto other things in queue. So, in many ways, it's the same ideas we had on the bare OS but with more specific implementation governed by Erlang's philosophy.

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

#620

Earlier quoted context omitted.

Microsoft also paid $8.5 billion for 663 million Skype users in 2011, which works out to $12.82/user.

You are comparing Skype to WhatsApp? Don't you think it's kind of apples and oranges? Skype had technology that Facebook itself uses for video chat and WhatsApp supposedly has a large user base which mysteriously enough is so different than FB user base, that it's worth $16b?

As someone who is a heavy user of both Whatsapp, GTalk/Hangouts and FB Messenger, I find Whatsapp to be much faster than others. So, there could be some technological value to this deal.

Microsoft had its own Live Messenger and Lync too, so the acquisition in both cases was for the user base and the brand than technology IMO.

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