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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

#71

How many active users does WhatsApp have? I'm trying to put this in perspective with the Instagram purchase and the Snapchat offer... finding it very difficult to understand the math behind this acquisition, although it is obviously linked to the recent plays with Messenger.

400 million http://blog.whatsapp.com/index.php/2013/12/400-million-stori...

A month later: http://techcrunch.com/2014/01/20/whatsapp-dld/

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

#73

Some interesting numbers: WhatsApp raised only $8 million (from Sequoia in 2011 http://www.crunchbase.com/company/whatsapp ). 19B sale price is about 10% of Facebook's 173B valuation. At 400 million, WhatsApp has more users than, the world's third most populous country , the United States has residents.

Assuming Sequoia took that for 20% of the company (fairly standard), they just made $3.2bn. For every $1 they invested in WhatsApp, they made $400 back.

However people feel about the VC game, 400x IRR are why so many people play.

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

#75
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.

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

#79
WhatsApp has become the defacto medium of communication with my friends and family in Africa, emerging way ahead of phone numbers, sms, facebook et al. I am not thrilled by the service, but if you want to stay in the loop, you have to join the bandwagon.

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

#80
post #19

http://blog.whatsapp.com/index.php/2012/06/why-we-dont-sell-...

Just remember, next time you read something similar from a startup, it just means they won't do ads unless they get a multi-billion dollar offer. And frankly, I can't blame them.

Edit, also: http://blog.whatsapp.com/index.php/2014/02/facebook/

It looks like this was a defensive acquisition, Facebook cared more about whatsapp not killing them then they care about making money with whatsapp.

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