So wait. Facebook paid $19 Billion for Whatsapp? 19 BILLION?!

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ronito

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That's like half of time warner. You could buy Kohls twice over and gamestop 4 times over. 19 Billion for a company that employs 52 people? Sure, whatsapp will add to their revenue base but 19 billion?
 
I'm no financial or business expert but I'm guessing purchases need to be justified by recouping cost at the very least. How are Facebook planning to make 19 Billion from WhatsApp, a free service that has no ads or revenue of any sort? What does Zuckerberg gain from this?
 
Someone hasn't got a goddamn clue at what's the actual popularity of Whatsapp, it seems.

Where are you from?

I'm no financial or business expert but I'm guessing purchases need to be justified by recouping cost at the very least. How are Facebook planning to make 19 Billion from WhatsApp, a free service that has no ads or revenue of any sort? What does Zuckerberg gain from this?

Whatsapp is 79 cents, I believe.
 
That's like half of time warner. You could buy Kohls twice over and gamestop 4 times over. 19 Billion for a company that employs 52 people? Sure, whatsapp will add to their revenue base but 19 billion?

The sizable active and engaged userbase is why. It is a massive asset.

http://www.zdnet.com/facebook-snaps-up-whatsapp-for-16b-in-user-land-grab-7000026526/
An estimated 450 million people use WhatsApp each month, with 70 percent of those using it on any given day. That's a huge feat for any mobile-focused startup, almost matching Facebook's active user base ratio.

WhatsApp's user base is significantly larger than Twitter, based on its own initial public offering documents posted last year.
 
From my understanding, Facebook is losing users to whatsapp and they made an offer too crazy to refuse for them to buy them out.

This way they get to keep users who would be using whatsapp instead of facebook and then farm them of whatever data facebook needs to make money.
 
Someone hasn't got a goddamn clue at what's the actual popularity of Whatsapp, it seems.

Where are you from?



Whatsapp is 79 cents, I believe.
It's always been free for me (UK, Android user) but even at 79 cents they're not breaking even on this deal any time soon.
 
I'm no financial or business expert but I'm guessing purchases need to be justified by recouping cost at the very least. How are Facebook planning to make 19 Billion from WhatsApp, a free service that has no ads or revenue of any sort? What does Zuckerberg gain from this?

Wondering that too, no ads and the $1 yearly subscription fee seems to not be charged in all regions (mine was just renewed without any cost).
 
It's always been free for me (UK, Android user) but even at 79 cents they're not breaking even on this deal any time soon.
Until they start mining data from their users, installing ads wherever they can, and heaving suggesting to their new users that their facebook mobile app is WAY better, and then proving it by sabotaging Whatsapp.
 
Wondering that too, no ads and the $1 yearly subscription fee seems to not be charged in all regions (mine was just renewed without any cost).

450 million users just put into the pocket of facebook. even if users jump to other services, tying the whatsapp to facebook is a huge boon because it keeps them all together in one tidy spot where they can control the use rbase with a strong muscle.
 
I still don't get why it took them so long to build their own serch engine. Seemed like the most logical thing to do, considering the site's huge userbase.
 
It was basically a ransom demand, but Wall Street Journal will make it sound like Zuckerberg is a bold visionary.

"Hey Facebook, we made a cheap app that steals your users and where we forbid ads and data mining. What them back?"

And now Facebook must either damage the app's popularity through advertising and data mining, or leave it as is and make no money from it.

It's easy to predict that Facebook will have to do this again and again in the future. They're still better positioned than Twitter on the potential revenue front.
 
Its only like $40 per user so its pretty cheap considering that both instagram and facebook are valued at over $100 per user.
 
I'm no financial or business expert but I'm guessing purchases need to be justified by recouping cost at the very least. How are Facebook planning to make 19 Billion from WhatsApp, a free service that has no ads or revenue of any sort? What does Zuckerberg gain from this?
Facebook and Instagram are already profitable. They probably aren't relying on WhatsApp to generate revenue. I'm assuming they acquired it to strengthen FaceBook's brand recognition and, more importantly, increase their market share of the social media/messaging sector.
 
http://thingsthatarecheaperthanwhatsapp.tumblr.com/?og=1

tumblr_n1b6lzAgu41ttzatvo1_1280.jpg


Yeah, it's crazy.
 
Even though there are a flood of articles about this whenever a web/social media based company is bought, when you buy a service like Whatsapp you pay for the user base/activity that can be monetised in the future.
 
What I'm wondering is...what if people really stop using it?
Many of my friends are switching to Threema and Telegram said they gained 1.8 million users just yesterday. People are atleast looking for something else.

Unless Facebook is going to change up the Whatsapp formula drastically, I don't see it happening.

If they do though, the guys who made Telegram are going to be rich as fuuuuuuuuck.
 
I never heard of this app and I don't know anyone who uses it.

How can there be so many people using this app?

Your contacts are obviously anyone that downloads it but the app ties your contact to whomever has your phone number.

Your phone number is the link that enables you to chat with each other.

Instant soundclips, images, videos, confirmation on sent messages and when the other person reads it, it's an amazing app
 
It's crazy how a simple messenger can turn out to be so profitable.... Certainly has one of those "I could have thought of that" vibes to it.
 
It's crazy how a simple messenger can turn out to be so profitable.... Certainly has one of those "I could have thought of that" vibes to it.

It's execution is what makes it awesome and the fact that they never tied any ads to it.
 
You have Facebook spend an insane amount of money that is in no way justified. That raises the question: Where did the money go?
To the owners of WhatsApp?
I don't know what you'e implying, but Sequoia had stakes in WhatsApp, not Facebook. Facebook decided to spend it.
 
Your contacts are obviously anyone that downloads it but the app ties your contact to whomever has your phone number.

Your phone number is the link that enables you to chat with each other.

Instant soundclips, images, videos, confirmation on sent messages and when the other person reads it, it's an amazing app

This doesn't describe basic texting?

It's execution is what makes it awesome and the fact that they never tied any ads to it.

Facebook just spent 19 billion on that?
 
Apparently Facebook already said they weren't going to add ads to it, so it's going to take decades for them to turn a profit on this deal. What a stupid decision to buy them.
 
Your contacts are obviously anyone that downloads it but the app ties your contact to whomever has your phone number.

Your phone number is the link that enables you to chat with each other.

Instant soundclips, images, videos, confirmation on sent messages and when the other person reads it, it's an amazing app


Just downloaded it. Seems cool. Kinda surprised something like this too so long to come out.
 
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