Your thoughts on FaceBook buying WhatsApp?

The big news today, at least in the internet/financial world, is FaceBook’s purchase of WhatsApp, an instant messaging service. WhatsApp has 55 employees, 450 million users and was started a little over 4 years ago. It also makes very little money. The price tag for WhatsApp is rumored to be $19 billion dollars, $4 billion in cash and the balance in FaceBook stock.

In essence, FaceBook Inc. (NASDAQ:FB) is buying 450 million eyeballs to make a major move into the mobile space. Do you think it was a mistake to buy WhatsApp and what effect do you think this acquisition will have on the stock of FaceBook?

Do you think FaceBook's stock will go up or down from here?

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Thanks for your viewpoint on FaceBook. Please feel free to add a comment below.

The Team

15 thoughts on “Your thoughts on FaceBook buying WhatsApp?

  1. FB, singlehandedly responsible for quickly informing people about the Syrian situation and preventing the attack. It basically shut down the warmongers and filled the public in on the reality of the situation, something the major networks r unable to do today. Their add space suddenly became prime real estate. I learn more in one day from fb than I learnt in all of high school. Like I said, people who diss social media aren't staying current or educating themselves.

  2. It would seem that they way over paid. It's funny, as time passes I have found that I don't have very much interest in knowing the people that diss social media sites because in general they r not learning individuals.

  3. I don't and will never use facebook or any other sad social site full of "fake" friends and silly trolls. Give me real people any time. I use Whatsapp though, so as soon as fopbook try to integrate whatsapp users, bombard me with annoying ads or charge an exorbitant annual fee I'll be off to another app which won't help FB or Whatsapp. Loyalty is only skin deep, especially for Fobbook users.

  4. Fb has little choice at this point but to start in on some heavy acquisitions. Where the heck else is growth going to come from? Nowhere...

  5. What is the barrier to entry for a better messaging app? Very low. Look at all the messaging apps that have popped up in just the last 2-3 years. Look at all the Chinese messaging apps! Zuckerborg has no idea what he's doing. The dude was in the right place at the right time - that's all. And now, because fadebook is so huge, if you're not advertising on it, you're assumed to be missing the ad boat. BUT no one knows the ROI on advertisement through fb. It just happens to be this huge thing that you HAVE to leverage, ad wise, or you "may" miss out. The fact is, this mystery of the ROI for fb ads is never discussed. It's taboo. It's a ponzi scheme. "If I don't let on, then I can just keep paying fb to place my ads and I'll 'look' like a hero."

  6. Such kind of past strategic mergers are not proven as " either wise or wealthy " both, so it seems, chances are more for repetition of history in this one more case

  7. if FB is using their stock as currency to buy WhatApp, apparently FB must think their stock is expensive- it's sort of a shame, or perhaps stupid, that their stock-holders don't concur.... but keep buying guys- somebody has to be the top

  8. Better to use the $16 billion to build a factory that actually manufactures something we need, like any one of a thousand products we used to make, but now have to import because we gave away our industrial base to China & SE Asia.

    The global backfire to the ongoing debasement of US currency will soon mean that all these imports will become vastly more expensive, when the manufacturing countries decline to accept US dollars to settle the transactions.

  9. "The preservation of the means of knowledge among the lowest ranks is of more importance to the public than all the property of all the rich men in the country." - John Adams

    "The greatest threat to democracy is the increasing concentration of major electronic media in ever fewer hands." - Rep. David Price (D-NC)

  10. Has the price been substantiated? If so, $12 billion in cash and $7 billion in stock appears to be a lot in light of profitability of Whatsapp. However, Whatsapp has a following greater than Twitter, I think this is what Facebook sees as worthwhile. That exposure to Whatsapp's demographic is what FB is willing to pay for. I think the price of the stock will fall until FB's next earnings report-the company is on fire and in a major growth mode. If it drops, I will pick up more shares. My initial purchase of FB was last year at $26 a share-very happy camper right now.

  11. I am user of watsap this not smart move beacause he forget to buy free chating and call and camera , tango , and. Viper , and line , all this wepsite it is free

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