[sati01]

If they can reach 1 billion users then $19 billion is cheap, that would be a worldwide monopoly. Instagram's growth after the acquisition was impressive, the Facebook brand is too strong.

[birdman_38]

To think they could have had all of BlackBerry, including BBM, for a measly $5 billion.

Gotta wonder how hard that committee was trying to sell the company.

[sandman10]

I'm totally confused by this deal. Blackberry had no bidders at 5 billion yet what'sapp sells for 19 billion.

This acquisition is an anomaly. Nobody else on this earth in their right mind would have paid this kind of cash for a messaging app.

[sati01]

This acquisition is an anomaly. Nobody else on this earth in their right mind would have paid this kind of cash for a messaging app.

The network effect creates natural monopolies, so you don't want to buy any cheap messaging app, you want THE messaging app that is closer to dominate the market.
If WhatsApp has 450m users and BBM has 90m users, WhatsApp is not 5 times bigger than BBM, It's orders of magnitud bigger by the number of possible connections between the nodes.
So, if WhatsApp keeps growing and giving a good service, the other apps will die.

[sandman10]

So, if WhatsApp keeps growing and giving a good service, the other apps will die.

But thats assuming everything stays as it is today (not likely).

[bekkay]

The network effect creates natural monopolies, so you don't want to buy any cheap messaging app, you want THE messaging app that is closer to dominate the market.
If WhatsApp has 450m users and BBM has 90m users, WhatsApp is not 5 times bigger than BBM, It's orders of magnitud bigger by the number of possible connections between the nodes.
So, if WhatsApp keeps growing and giving a good service, the other apps will die.

I agree with your argument, but I guess you meant network effects create monopolies, not necessarily natural monopolies. Because "natural" in natural monopolies has more to do with costs and economies of scale whereas network effects have to do with the added value of each additional user (i.e. the externality). I mean these are somewhat related but different factors.

[bekkay]

But thats assuming everything stays as it is today (not likely).

I just read the Engagdet coverage on this and they claim that Facebook will likely keep WhatsApp's operations independent as they did with Instagram.

[pankaler]

I like bbm and use it daily but many of my friends uninstalled bbm on their android because:
1. The app itself is slow and sometimes makes their phone unresponsive.
2. Force closed so many times.
3. Memory hog especially after bbm 2.0 with channel.
4. Severe battery drain.
5. Not reaching users as wide as whatsapp. Which means almost every bbm users has whatsapp installed so my friends just pick whatsapp instead.

Actually points 1 - 4 that makes them stay away from bbm.

Compare 10mb memory usage by whatsapp and 50 - 100mb by bbm.

Dont even talk about privacy many of my friends didn't care about it.

Sent using Tapatalk

[bekkay]

I like bbm and use it daily but many of my friends uninstalled bbm on their android because:
1. The app itself is slow and sometimes makes their phone unresponsive.
2. Force closed so many times.
3. Memory hog especially after bbm 2.0 with channel.
4. Severe battery drain.
5. Not reaching users as wide as whatsapp. Which means almost every bbm users has whatsapp installed so my friends just pick whatsapp instead.

Actually points 1 - 4 that makes them stay away from bbm.

Compare 10mb memory usage by whatsapp and 50 - 100mb by bbm.

Dont even talk about privacy many of my friends didn't care about it.

Sent using Tapatalk

Agree with you. WhatsApp has almost zero drain on the battery when in background (at least I have not noticed any difference in battery life with or withour What'sApp).

When I installed BBM however, it always showed as the 4th or 5th top item on my battery stats. Couple that with sluggishness, awful UI (subjective), and, of course, almost no one to chat with and here is one more person who decided to uninstall it after only a few days of use.

It's possible they have fixed some of the problems, but the initial impression is there. And, of course, there are still no friends to chat with

[BBFanatic4Life]

What would you value WhatsApp at in dollars, and why?

Posted via CB10

Well I'm no financial guru but I sure as hell would not be offering $16-$19 Billion for a company that was valued around $1 Billion. Sure they have 450-500 million users world wide, and if they are all paying $1/year that's $450-$500 million with low operational costs. And yes they have a small staff around 50 people and even if they were each being paid $1 million/year + say a max of maybe $15-$20 million and I highly doubt it would be that expensive for a place to code out of and servers, but just say it is, that would be a max of $70 million. So you're banking a fair chunk of coin, but they aren't making near that amount of money right now.

When I look at what Skype - $8.5 Billion, Instagram - $1 Billion, Motorola - $12.5 Billion were bought for I can't justify $16-$19 Billion for WhatsApp. Obviously to Facebook it's all just about the user base and the amount of information that they can data mine and sell to advertisers. And then there's talk of LINE having an IPO worth $28 billion. But at least with LINE they have a steady revenue stream and posted revenue of $132 million during Q2 2013. And I know WhatsApp sends more messages daily than Twitter which has a market cap of just over $20 billion currently. Twitter also has revenue of over $405 million but employs around 2,500 people. So if every single person using WhatsApp paid $1/year they could be making more money then Twitter while having lower operational costs.

I guess when you compare it to Twitter and LINE it's "fair" market value. For what little WhatsApp does compared to LINE though, it just baffles me. Just goes to show that information/knowledge is power and that's exactly what Facebook wants. They want to get their hands on every little piece of data they can and they'll pay an insane amount of money to do it. And if people are completely ok with this, well I just have to shake my head. I know I won't be a product that Facebook can just buy and sell at their will.

[LateToTheGame]

WhatsApp was gone from my iWhatever within minutes of reading about the deal. I don't know if I can convince my contacts of the benefits of BBM but FB ain't getting the chance to read any more of my messages.


Sent from my iDontThinkSo

Z10 10.2.1.537

[needforbbx]

Viber has approx 300M users - 100M active each month. Purchase price $900M, which is $9 for each active user.
(Rakuten to Buy Voice-Call App Maker Viber - WSJ.com))

Whatsapp has 450M active users each month. Purchase price $19B, which is $42 per active user.

Lots of premium top dawg status

[KemKev]

16billion seems a little excessive for a messaging service o.O

If someone is willing to pay that amount, it isn't...

[Slash82]

and I say: FAILBERRY AGAIN!!!!!

and no I don't think that Blackberry is a fail (my heart beats for Blackberry!)
But Blackberry's marketing sucks like having bloating on a first date...

Since launching BBM to multiple plattforms they had the chance to show the world how awesome their messenger is!

1.) NSA scandal: They had the chance to hook in to push out the message about BBMs security and awesomeness!
But nothing on TV, Internet (except on their own page - where no one goes except BB fans), radio or newspaper. -nothing!

2. NOW!: Everyone is concerned about security issues because of Facebook's takeover. But: nothing again.
I read more on my Facebook about KiK etc. than anything else. WA is the top topic right now!

And the sad thing is: Over here in Germany almost no one I know knows anything about BBM or wants to try it, because they don't know it...
I showed my BBM to a friend and he said: "Oh, I heard about it! That is that thing from Blackberry which copies Whats App, right?"

This is so frustrating!!
Why won't Blackberry "keep moving"?
What could be the cheapest ad to convince people moving to Blackberry? -right enjoying the power of BBM. First entry!

I have been using, loving and trusting on Blackberry since 2005 - but today I don't get it!

[schiri]

Yep.
So now FB will have everyone's phone numbers too that use WhatsApp.

Pretty scarey IMO.

WhatsApp was gone from my iWhatever within minutes of reading about the deal. I don't know if I can convince my contacts of the benefits of BBM but FB ain't getting the chance to read any more of my messages.


Sent from my iDontThinkSo

Z10 10.2.1.537

[srzjumper]

What's wrong with WhatsApp other than not being as secure as your BBM? I'm going to downlaod and try it out. Free 1st year and $1 onward. Basically free. BBM missed the boat, it has sailed. And it's called WhatsApp.

[anon(5818411)]

facebook is definitely desperate all these analysts are predicting facebook will die by 2017/2018, which I can't see unless someone takes the spotlight similar to what facebook did to myspace. This is just the key to the puzzle to fully connect everyone socially. Instagram, Facebook and Whatsapp are tackling 3 different markets and winning all 3 of them. Mark Zuckerberg is one smart guy.

Hopefully BBM turns out on top
1. People using anything below a iPhone 5s BBm is laggy as hell and kills battery.
2. They need to fix that and add in Video for everyone not just voice. Implement all this on a desktop client maybe tied in to link for extra security.
3. Be in all QNX cars as the only native social app integrated into their systems.
4. WP8 app before I was saying no since it's the direct competition for 3rd place in the mobile market but Whatsapp will take all those people to their advantage
5. a)Better sharing integration like KIK has The New Kik iOS7 App | Kik Messenger
b) I hate to say it but copy everything that KIK is doing, they are doing nothing but good things and a really good effect on expanding their IM service Blog | Kik Messenger

[gnirkatto]

16billion seems a little excessive for a messaging service o.O

Posted via CB10

They did not buy a messaging service.
They bought 20+ billion user records.

[gnirkatto]

What's wrong with WhatsApp other than not being as secure as your BBM?

Not being as secure as BBM = giving away all your personal data AND all data of ALL your friends & family, workmates, customers, business partners etc. to a company that is well known for making improper use of it.

[gnirkatto]

I just read the Engagdet coverage on this and they claim that Facebook will likely keep WhatsApp's operations independent as they did with Instagram.

Do you seriously believe that this does mean that Suckerberg will NOT make use of all WA data for his company's benefit?

[jegs2]

Posted this in a related thread, a must-see:

[tchocky77]

This is the best cross-platform messaging app. Without question;

http://techcrunch.com/2013/10/27/mee...ocial-network/

I've certainly used Whatsapp. I guess it's THE cross-platform messenger at this time. But I deleted it when I got Telegram. Deleted my FB years ago when I got twitter.

19 billion.

Wowzers.

[srzjumper]

and I say: FAILBERRY AGAIN!!!!!

and no I don't think that Blackberry is a fail (my heart beats for Blackberry!)
But Blackberry's marketing sucks like having bloating on a first date...

Since launching BBM to multiple plattforms they had the chance to show the world how awesome their messenger is!

1.) NSA scandal: They had the chance to hook in to push out the message about BBMs security and awesomeness!
But nothing on TV, Internet (except on their own page - where no one goes except BB fans), radio or newspaper. -nothing!

2. NOW!: Everyone is concerned about security issues because of Facebook's takeover. But: nothing again.
I read more on my Facebook about KiK etc. than anything else. WA is the top topic right now!

And the sad thing is: Over here in Germany almost no one I know knows anything about BBM or wants to try it, because they don't know it...
I showed my BBM to a friend and he said: "Oh, I heard about it! That is that thing from Blackberry which copies Whats App, right?"

This is so frustrating!!
Why won't Blackberry "keep moving"?
What could be the cheapest ad to convince people moving to Blackberry? -right enjoying the power of BBM. First entry!

I have been using, loving and trusting on Blackberry since 2005 - but today I don't get it!

WhatsApp didn't SPEND A PENNY ON ADVERTISING. All organic.

[anon3969612]

and the new app name:

WhatsItsFace

Available for sideload, summer 2014.

[bekkay]

Do you seriously believe that this does mean that Suckerberg will NOT make use of all WA data for his company's benefit?

No, this is not what it means. The data collection part may happen without any or very little disruption to WhatsApp's current mode of operation.