Wednesday, February 19, 2014

Social: Facebook's $16 Billion Bill for Whatsapp Made the $3 Billion It Offered Snapchat Look Low-Balled

As you may well know by now, Facebook bought Whatsapp for $16 billion in cash, stock, and retention.  A few months ago, some quarters of the Internet was abuzz with Snapchat's rejection of the $3 billion overture from Facebook.

I'd would have sold.  Take my billion and move onto something else.  Given the Whatsapp deal, Snapchat was right in not dealing.  It could have asked for two to five times more from Facebook.

Still, it's hard to fathom if all of this will pay off or are we in the midst of a social network bubble not unlike when Internet companies in the late 90s and early 2000s were throwing money away left and right.

The question now is what's next for Facebook, what it'll do with Whatsapp (supposedly, nothing will change...right), and how will other social networks or competitors like Google arm themselves.  There are plenty of other messaging "giants" out there that could be for sale given the right price.

Like Snapchat or Line.

No comments: