Facebook Buys WhatsApp for $16 Billion, BlackBerry Next?

  • Posted by a hidden member.
    Log in to view his profile

    Feb 20, 2014 2:43 AM GMT
    Facebook said on Wednesday that it would acquire WhatsApp, a messaging start-up, for $16 billion in cash and stock.

    The eye-popping price is Facebook’s largest acquisition by far and represents a new height in the frenzy to acquire popular technology start-ups.

    Facebook will pay $4 billion in cash and $12 billion worth of Facebook shares for WhatsApp. An additional $3 billion in restricted stock units will be granted to WhatsApp employees and founders. These units will vest over the next four years.

    By any measure, Facebook is paying a steep price for a mobile application that is widely used internationally but less known in the United States. Including the restricted stock units, the acquisition total amounts to $345 million for every one of the company’s 55 employees.

    WhatsApp has more than 450 million monthly users, with 70 percent of those active on a given day. By that measure, Facebook is paying about $40 per user.

    http://dealbook.nytimes.com/2014/02/19/facebook-to-buy-messaging-start-up/?hp
  • Posted by a hidden member.
    Log in to view his profile

    Feb 20, 2014 2:58 AM GMT
    This part was really just TOO MUCH!!!

    From the article......In the spring of 2012, Mr. Zuckerberg first reached out to Mr. Koum. The two met at a coffee shop in Los Altos, Calif., and spoke for an hour, then took a walk for another hour and a half. Later that year, they began a series of dinners, and continued to discuss messaging and communication services during meals and walks in the hills above Silicon Valley.

    Mr. Zuckerberg asked Mr. Koum to dinner at his home on Feb. 9, where he formally proposed a deal and invited Mr. Koum to join the Facebook board. Mr. Koum thought about it for a few days, and the two men met again on Valentine’s Day. Mr. Koum came over to Mr. Zuckerberg’s home, crashing the dinner Mr. Zuckerberg was sharing with his wife, Priscilla Chan. They negotiated over a plate of chocolate-covered strawberries intended for Ms. Chan.

    By the end of the weekend, they had struck a deal.


    Mark is going to pay dearly for those chocolate-covered stawberries. I wonder what price Priscilla will extract from Mark?
  • Posted by a hidden member.
    Log in to view his profile

    Feb 20, 2014 3:31 AM GMT
    Given that his wife is Asian am sure she knows how to control her impulse. Giggles!
  • Posted by a hidden member.
    Log in to view his profile

    Feb 20, 2014 3:39 AM GMT
    The WhatsApp guys hit the jackpot. Messaging apps have gotten stale. They were starting to lose relevance ever since Snapchat came out. Same thing with Viber, who recently got bought by a Japanese company.
  • Posted by a hidden member.
    Log in to view his profile

    Feb 20, 2014 3:48 AM GMT
    The key with WhatsApp is its international members for Facebook.
  • Posted by a hidden member.
    Log in to view his profile

    Feb 20, 2014 5:16 PM GMT
    hahaha Zuckerburg is a fucking idiot, FB can't innovate shit on it's own