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by securingsincity 4496 days ago
$19 billion and whatsapp has 465 million users, and ICQ was purchased for $287 million had 12 million users at the time. $40 dollars per user vs $24 dollars per user.

Now if the goal were to acquire users. its far more likely that facebook would have a huge overlap in the number of users it has already and those on whatsapp. That means maybe a cost of acquisition at let's completely speculate $100 dollars per user(maybe more). It seems kind of silly. but then you think about their penetration in developing markets and network effects... I don't know I'm not zuck.

BUT on a complete tangent of my comment. I should start an Israeli chat company. they've had some big exits.

2 comments

oh and the fact that whatsapp actually is very profitable
If you can call a P/E of 800+ "very profitable"? Making $20M a year profit is no small thing at all, and I'm sure if it was bought for a billion, you'd see far less comments on the subject.
It makes $20 million in revenue. I've read that they're profitable, but never the number.
Goes to show that only 20 Million out of 430M paid the $1/year (which has something to do with it not being charged everywhere and people having a 1 year grace period and a majority of their target market having no credit card (young audience in emerging markets)). Let's see how Zuckerberg plans to change that drastically.
With advertising or selling user information? That seems to be the most likely to me given Facebook's history
32 employees * 100,000 = 3.2 million Let's say a million a year for office space and another million for infrastructure and bandwidth, seems like they were fairly profitable for what they had. No idea how Facebook plans to recoup $20 billion though.
Not with charging $1 a pop, that's for sure.
not very profitable compared to the acquisition price.
20 million in revenue last year is very profitable? Twitter makes that in a day.
Twitter generates about $2M in revenue a day. And they make nothing since they're not profitable. So compared to Twitter, WhatsApp is undefined profitable.
Are you sure there is such a big overlap between WhatsApp users and Facebook users?

The US is Facebook's biggest market but I would bet the US is no where near the top of WhatsApp's market list.