Still shocked? Here’s a look at the other crazy acquisitions across the years.
Another day and another acquisition — and another one that is jaw dropping and seemingly insane.
Less than a week after Japan’s Rakuten acquired Viber for $900 million, Facebook co-founder and chief executive Mark Zuckerberg announced that he is buying WhatsApp for a whopping $16 billion in cash and stock. Add another $3 billion for WhatsApp employees may get over next few years in restricted stock, and this becomes a $19 billion company.
When I think about the deal, it actually makes what investor Paul Kedrosky calls “ridiculously rational” sense. It keeps WhatsApp out of the hands of Google and most importantly takes out an aggressive competitor for “attention” from the market.
Facebook is going to end up competing with apps like Line and WeChat in many markets for the consumer’s mobile minutes and WhatsApp gives the Menlo Park based company a strong competitive weapon. While potential monetization remains…
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