Facebook to buy Whatsapp for $19 billion.

[Printer Bandit]

i want the next killer app to be created by an ATOT member. we can then ATOT effect the shit out of it.

get to work people.

 

[foghorn67]

Actually there is somebody I can't text who lives in another country because one of our phones' services won't connect. I guess this would get around it when email isn't used.And yet many on this tech forum still haven't heard of it.

There are some regions where the iPhone isn't as popular as it is here. No matter what their economic status is.

For what it's worth, the Note 3 is the new "gotta have it" status symbol.

 

[WelshBloke]

Texts should be virtually free anyway. There's no reason a company couldn't make money by charging $5 for 10k messages or so. The data quantity is small enough to get lost in the noise. The exorbitant rates companies charge is ridiculous.

Texts should be declared obsolete and only used when the network won't support anything else.

 

[Capt Caveman]

My FB stock is up, so good news.

 

[Red Squirrel]

The US is a bit weird for messenger apps.
Your phone contracts with bundled free texts sort of distorts the market for mobile messenger apps.

You'll just have to take my word (or just do a quick Google ) that WhatsApp is indeed one of the big dogs of the messaging world.

But how does it work, do you need data ($$$$)? Why use some app to talk when I can use texting, and not need an expensive data plan?

What baffles me even more is voice chat apps. IT'S A FREAKING PHONE! Call the person! LOL

 

[lxskllr]

Texts should be declared obsolete and only used when the network won't support anything else.

I like them as a lightweight email type thing for stuff that doesn't require an immediate response.

 

[Mojoed]

I guess in out of touch too. I've never heard of this app until I clicked this thread.

 

[edro]

Never heard of it.

EDIT: Oh, it's like iMessage for poor people who use Androids hee hee

Sounds like it's worth $19B for sure. Creating an app like that would take at least a few weeks, so yeah well priced ugh

lol, I agree on all 3 points.

 

[Triumph]

yeah, 450 million users. that's great. but you just spent 19 billion dollars for access to 450 million people who don't want to spend money.

 

[AznAnarchy99]

why, I didn't think anyone actually used it...

Not in America. Its HUGE in Europe where most people don't have an unlimited texting plan.

 

[Nintendesert]

Europe is so backwards lol.

 

[BarkingGhostar]

I'm guessing very few of you people actually know how SMS was originally engineered. And how the transparency in wireless evolution is mocking most of you.

 

[WelshBloke]

But how does it work, do you need data ($$$$)? Why use some app to talk when I can use texting, and not need an expensive data plan?

What baffles me even more is voice chat apps. IT'S A FREAKING PHONE! Call the person! LOL

It uses very little data. If you have a smart phone you need some sort of access to data.
How much does it cost you to text internationally? To send photos or video?

You should probably get used to VOIP. I would guess that everything will go over your data connection soon.

 

[WelshBloke]

lol, I agree on all 3 points.

It's more like a non crippled imessage that actually functions like a messenger should rather than only being able to message a minority of people.

 

[cronos]

yeah, 450 million users. that's great. but you just spent 19 billion dollars for access to 450 million people who don't want to spend money.

Whatsapp is a paid app. There are a few different arrangements depending on the platform (iOS is straight up one time payment, Android is free first year and after that there's an annual fee, etc.), but it is not a free app.

 

[JumBie]

The only thing tangible this company has is a server database with emails, and names....Jesus christ, I am not sure if they store content for security reasons, but other than that they really dont have much else. So their userbase is worth 19B so help my f***k. Boys time to get started on an app.

Whatsapp is a paid app. There are a few different arrangements depending on the platform (iOS is straight up one time payment, Android is free first year and after that there's an annual fee, etc.), but it is not a free app.

Really? I have been using it for over a year on Android and never noticed any mention of payment.

 

[WelshBloke]

The only thing tangible this company has is a server database with emails, and names....Jesus christ, I am not sure if they store content for security reasons, but other than that they really dont have much else. So their userbase is worth 19B so help my f***k. Boys time to get started on an app.

It has 450 million active users.

Good luck getting your messaging app off the ground without anyone else using it to message.

 

[WelshBloke]

Europe is so backwards lol.

I wished our mobile phone landscape looked like the one in the US.

Said no one in Europe ever.

 

[jagec]

It has 450 million active users.

Good luck getting your messaging app off the ground without anyone else using it to message.

Sounds like the same problem that was faced by, oh, EVERY TECH COMPANY IN THE HISTORY OF EVER.

 

[WelshBloke]

Sounds like the same problem that was faced by, oh, EVERY TECH COMPANY IN THE HISTORY OF EVER.

Not really.

A messenger service with few users is useless to everyone. Its really hard to transition from no users to being popular when the most important thing is a big user base.

Starting a new email provider would be far easier for example as you don't need a big client base for your product to work.

 

[jagec]

Not really.

A messenger service with few users is useless to everyone. Its really hard to transition from no users to being popular when the most important thing is a big user base.

Well, I'm convinced. It's impossible for a startup tech company like Whatsapp to exist, because they don't automatically have millions of users when they launch.

 

[WelshBloke]

Well, I'm convinced. It's impossible for a startup tech company like Whatsapp to exist, because they don't automatically have millions of users when they launch.

Off you go then. Set up a messaging service. You seem to think that other services having 100s of millions more users isn't a problem. You should do well.

 

[z0mb13]

The valuation is just redonkulous
Lets say they make $1 per user every year (they dont.. some of them dont pay in the first year) so they make $450 million per year. FB is playing 42x REVENUE???? WTF BBQ

 

[Printer Bandit]

if the founder of whatsapp went on shark tank...

 

[senseamp]

I guess it's not too bad of a deal for FB. 100% of WhatsApp is worth 10% of FB.
They actually have a straightforward model for making money $1 per user per year. With 450M users, that is about 40 price to sales ratio. FB is 21.
But, WhatsApp's $1/year is nominal charge while they grow their network. Once they have a big enough user base and network effect, they can easily charge $1/month. It's still a pittance compared to carrier charges. Majority of users who will pay $1/year will pay $1/month too. That would make WhatsApp price to sales ratio just 3.5, which is 6 times cheaper than FB. And most of that is pure profit, which would make WhatsApp's P/E around 4 at $19B valuation, ten times cheaper than Facebook forward P/E of 40, which it's not even clear FB can maintain, whereas WhatsApp is growing user base. So trading $15B of FB stock and $4B in cash for WhatsApp was a pretty good deal for FB.