19 BILLION Dollars

[Frutos]

In cash and shares - that's what Facebook has paid to buy the WhatsApp messenger service!

$4 billion in cash and $15.4 billion in shares, of which $3 billion will go to the app's founders and employees after 4 years, with all of the employees keeping their existing jobs as part of the takeover.

Not a bad day's work for Jan Koum, the college dropout who co-created WhatsApp and will get a seat on Facebook's Board of Directors as part of all this!

http://news.sky.com/story/1214399/facebook-agrees-to-buy-whatsapp-for-19bn

 

[KZNSeagull]

Ridiculous. In 5 years time, when Twitter and Facebook are still not making money, where will they be then?

But good luck to Jan Koum!

 

[Tricky Dicky]

From the thread title I thought you'd be looking at my bank account !

 

[Badger]

I thought this was going to be a Zaha thread.

 

[KZNSeagull]

From the thread title I thought you'd be looking at my bank account !

Overdrawn

 

[MattBackHome]

Incidentally my Whatsapp has been much slower this morning. I blame Zuckerberg. I suspect he's sorting out some 'suggested' messages for me.

 

[Tricky Dicky]

Overdrawn

You know what they say - if you're £1,000 overdrawn it's your problem, if you're £19bn overdrawn, it's the banks problem.

 

[Mowgli37]

I thought this was going to be a Zaha thread.

 

[GingerBeerMan]

Ridiculous. In 5 years time, when Twitter and Facebook are still not making money, where will they be then?

But good luck to Jan Koum!

Facebook made over $500M in profit last year, that's hardly "not making money".

 

[Eksman]

I don't see how they could make this money back?

 

[Ali_rrr]

I bet the guy who made snapchat is regretting not selling. The popularity of snapchat must be decreasing rapidly now, everyone I know has stopped using it. I can't believe anyone would turn down $3 billion for an app.

 

[KZNSeagull]

Facebook made over $500M in profit last year, that's hardly "not making money".

O alright then, I will let them off. Just Twitter then that will never make money. And Amazon...

 

[Notters]

Why on Earth is it worth that much? How does it even make money?

 

[GingerBeerMan]

O alright then, I will let them off. Just Twitter then that will never make money. And Amazon...

I imagine Twitter is going through the same phase that Facebook had to go through. Living off investments to keep afloat with the knowledge the potential for huge returns is there, I'd imagine they'll start turning profit very soon.

I read Amazon doesn't make profit because the CEO wants to re-invest every possibly cent in R&D and make sure Amazon can't 'fade away' like we've seen with countless tech firms over the last decade. The potential for huge profits is there should they want it

 

[Taybha]

Please god , tell me im not the only person on the planet that does not know what a whats app is

 

[albionalex]

Why on Earth is it worth that much? How does it even make money?

After a free trial that lasts something like 9 months, you have to pay 69p or something like that a year.

 

[Notters]

After a free trial that lasts something like 9 months, you have to pay 69p or something like that a year.

Oh really? Don't think I've ever paid for it?

 

[Badger]

Why on Earth is it worth that much? How does it even make money?

I think each user has to pay about $1 a year to use WhatsApp, but even with the hundreds of millions of users that's going to take a long time to make $19bn

 

[Frutos]

After a free trial that lasts something like 9 months, you have to pay 69p or something like that a year.

Yup, exactly this.

 

[Max Paper]

I got what's app years ago when you had to pay for it (£0.69 or something) and I've not paid a penny since unless they are conning me and I haven't noticed, which is unlikely as I look at my balances daily.