I just wanted to explain the Facebook-Whatsapp deal and represent the 19billion Facebook paid in easy terms. 19billion USD in rupee term means somewhere around 117762 crore. To understand it consider the amount was being used to purchase some major companies in India say BPCL, HPCL and IOC, then even after completely acquiring these 3 companies there would have been sufficient amount left out in the amount paid to Whatsapp. He could have even bought SBI in full and left out with a few crores in hand. The amount is more than the total revenue that indian railways makes in an year. All this for a mobile application that made 20 million in revenues last year from 450 million users. But something that has to be understood here is that Facebook has paid only 4billion in cash and the rest in Facebook shares which are at it's all time high at present. That means he had to dilute less of Facebook at current market value and he could always buy those back if the markets correct and bring down share price of Facebook(May be the reason to drive up the value of Facebook shares???)
Is this some sort of consolidation in app messaging or just the start of a 'mobapp bubble' in the making. Have to wait and watch, only time can tell. Let's hope Whatsapp makes a lot of money for Facebook.
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