Monthly Archives: February 2014

Why Facebook was willing to pay $19b—and maybe more—to get WhatsApp on board?

In the last few days the acquisition of WhatsApp for a stunning sum of $19b was the most popular discussion topic in the tech business community.

The reaction to the acquisition cost ranged from criticism (like this Tumblr post suggesting that Iceland may be cheaper, at $14b) to thoughtful analysis of the economic value of WhatApp’s 450 million users (like this CNN Money article) or its SMS volume.

I believe most critics and analysts are missing the point.

Continue reading