Why did Facebook buy WhatsApp for $19 billion in cash and stock, a Silicon Valley record?
Caleb Garling writing for SFGate:
“There’s a tendency to dissect the acquisition by user numbers or compare WhatsApp to other messaging apps or Instagram but, to me, the value for Facebook is in WhatsApp’s hundreds of millions of billing accounts. WhatsApp charges $0.99 per year after a yearlong free trial. That is basically a zero barrier to give WhatsApp your payment info.”
The deal met with investor skepticism.
Facebook’s stock slid up to 5 percent in late trading:
|Facebook stock drops on $19 billion WhatsApp deal|
But back to the details.
Your payment information.
Some 450 million people worldwide use WhatsApp’s subscription service.
That’s a big entree to new users for Facebook.
And lot of new information.
How will it be used?