Facebook to buy Whatsapp for $19 billion.

[Triumph]

Yeah the confused comments asking why they spent so much on a messaging app need to realize that it's not the app, it's the ridiculously large Whatsapp userbase that FB is buying.

I understand that, but how did they come up with that number? I mean, were there other bidders? I'd think if I ran a company that had 55 employees and all we did was run a simple text messaging service, if someone offered me a billion dollars I'd be tickled pink.

 

[Red Storm]

I understand that, but how did they come up with that number? I mean, were there other bidders? I'd think if I ran a company that had 55 employees and all we did was run a simple text messaging service, if someone offered me a billion dollars I'd be tickled pink.

Well I believe it's "only" 3 billion in cash, the rest is in stocks. I think Facebook offered so much because they just wanted to be sure they'd get it and not potentially lose them to Google or Apple or something. Still think they stupidly overpaid, but good for the Whatsapp owners.

 

[WelshBloke]

Well I believe it's "only" 3 billion in cash, the rest is in stocks. I think Facebook offered so much because they just wanted to be sure they'd get it and not potentially lose them to Google or Apple or something. Still think they stupidly overpaid, but good for the Whatsapp owners.

Yeah I can't believe that Google wasn't looking at it. It could have ended up being more expensive if a bidding war had broken out.

 

[BladeVenom]

Yeah the confused comments asking why they spent so much on a messaging app need to realize that it's not the app, it's the ridiculously large Whatsapp userbase that FB is buying.

I think almost everyone has read how large the user base is.

You really think each user is worth almost $50 per user? It's a free app that is bringing in no money. How do they make back that $19 billion? Especially when anything they do to monetize it could cause customers to just switch to another free app.

 

[WelshBloke]

I think almost everyone has read how large the user base is.

You really think each user is worth almost $50 per user? It's a free app that is bringing in no money. How do they make back that $19 billion? Especially when anything they do to monetize it could cause customers to just switch to another free app.

No ones going to switch if everyone else is on their network.

Remember messaging isn't like email, its much easier to take control of and lock people into.

 

[n7]

No ones going to switch if everyone else is on their network.

Remember messaging isn't like email, its much easier to take control of and lock people into.

There are many alternatives that are free, and if FB starts ruining Whatsapp via ads or forcing people to actually pay, they will lose huge numbers of those people very fast.

I've never installed FB messenger so i don't know if it's really comparable to Whatsapp, but i still find the 19B a rather hilarious amount as it is true there is really no way they will recoup that other than if they are blatantly selling info on those users to the highest bidder...

 

[WelshBloke]

There are many alternatives that are free,

Yeah but an instant messenger is useless if the person you want to message isn't on that network.

No ones going to skip to a free alternative if they cant actually talk to anyone on it.

 

[Capt Caveman]

I understand that, but how did they come up with that number? I mean, were there other bidders? I'd think if I ran a company that had 55 employees and all we did was run a simple text messaging service, if someone offered me a billion dollars I'd be tickled pink.

Then you don't know the value of 450 million users that is increasing by a million users everyday.

 

[n7]

Yeah but an instant messenger is useless if the person you want to message isn't on that network.

No ones going to skip to a free alternative if they cant actually talk to anyone on it.

Sure they will.

Most people that i know use Whatsapp primarily because of its group chat ability.
I'm sure there are lots of people who use it only for person to person chat, but it's not necessary for that at all.

In other words, if your whole group of friends all in that group decide to use another app (exactly something myself and others are considering if FB fucks this up), we'll all switch. Just like that, gone.

The whole reason Whatsapp is popular is because people hear of their friends using it.
Those friends groups switch to other multi-person chat apps, and voila, they follow...and all those new users suddenly aren't heading toward Whatsapp.

 

[mikegg]

The Instagram purchase, I thought was brilliant even though people ridiculed Facebook for it. But that was $1 billion. This is 19x more.

It's stupid.

 

[WelshBloke]

Sure they will.

No they wont.

What happens is a few people switch and use multiple messenger apps (because all their friends didn't switch and they dont want to get left out) for awhile and then after the buzz of switching has worn off and they are pissed off with managing multiple, incompatible messaging apps they switch back.

You don't think that maybe some research might have been done about this before spending billions of dollars?

 

[Triumph]

Then you don't know the value of 450 million users that is increasing by a million users everyday.

And most likely neither do you. I may not be able to see all the books, but I'm sure humanity would be better served by spending that money elsewhere. Not that I believe that would ever even be an option, but really, come on! 19 billion?

People should just go back to using AIM.

 

[Capt Caveman]

And most likely neither do you. I may not be able to see all the books, but I'm sure humanity would be better served by spending that money elsewhere. Not that I believe that would ever even be an option, but really, come on! 19 billion?

People should just go back to using AIM.

/facepalm

Zuckerberg gives millions to charity. You think every company should give billions for humanity and not try to grow their companies?

The fact that you'd be happy to sell Whatsapp for $1b if you were the owner demonstrates how little you know.

 

[WelshBloke]

People should just go back to using AIM.

AIM, proof that numbers do matter! :biggrin:

Honest, I'd use it if any other ah heck I knew did!

 

[Generator]

In poker you have "tells". Well this is a tell to. Anybody posting that WhatsApp user base is actually worth 19 billion must be on this racket. Who knows how it all works, probably some combination of pump and dump and facebook just funneling money to themselves. The valuation is over estimated by 99% so that leaves 190 million to plunder before the "tell" that the facebook house of cards implodes.

 

[BladeVenom]

You don't think that maybe some research might have been done about this before spending billions of dollars?

I'm sure there was research done before the last dot com bubble to. Yet some companies were still overvalued by 10000%.

 

[Triumph]

/facepalm

Zuckerberg gives millions to charity. You think every company should give billions for humanity and not try to grow their companies?

The fact that you'd be happy to sell Whatsapp for $1b if you were the owner demonstrates how little you know.

/facepalm

What part of "Not that I believe that would ever even be an option" is lost on you?

The fact that you can't see an overinflated bubble when it's staring you in the face demonstrates how little you know. Google bought Youtube for 1.6 billion. YOUTUBE. And they only make a few billion a year on it. No way is this company worth 10 times what Youtube is worth. Did you forget about the dot com bubble? How many insane IPO's did we see for companies that didn't even sell a tangible product?