Articles

WHY FACEBOOK BOUGHT WHATSAPP FOR $19 BILLION

Luke Buchanan

WHY FACEBOOK BOUGHT WHATSAPP FOR $19 BILLION

WRITTEN BY: Henry Blodget

Facebook made a breathtaking move yesterday, buying messaging app WhatsApp for $19 billion.

Mark Zuckerberg

Even for Facebook, that’s a staggering amount to pay for a company with estimated 2013 revenue of only $20 million. It represents almost 10% of Facebook’s overall value — for a “messaging app.”

So in the wake of the announcement, the usual chorus of keyboard pundits took to Twitter to snicker together and pronounce Facebook and its CEO, Mark Zuckerberg, brain dead.

But Facebook buying WhatsApp for $19 billion isn’t a brain dead move.

It’s just bold.

Very bold.

Like other bold moves, Facebook’s WhatsApp deal could end up looking brilliant.

Or moronic.

That’s what makes it bold.

If it were guaranteed to end up looking brilliant, it wouldn’t be bold. It would be obvious, safe, and boring. And Facebook hasn’t built a service used by…

View original post 807 more words

Luke McKinley delivers in-depth, local knowledge regarding NW Washington neighborhoods. Luke is proficient in relative-valuation and formerly worked as a strategist for an advertising firm in Santa Monica. If you wish to learn more about your home's worth, please call or email to schedule a free real estate consultation today. You may also visit Luke Buchanan's blog or Facebook, to find additional information that may further guide your real estate decisions. Hobbies include: golf, grilling, image editing, photography, running, skiing, tennis, travel and yoga

0 comments on “WHY FACEBOOK BOUGHT WHATSAPP FOR $19 BILLION

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s