3 ms·

In all seriousness, $8B may sound like a bargain for one billion users + extra perks(like one of Internet's oldest brand). By comparison, what facebook spent $1

by devy 10y ago

In all seriousness, $8B may sound like a bargain for one billion users + extra perks(like one of Internet's oldest brand). By comparison, what facebook spent $19.3B for WhatsApp, they weren't even reach one billion users! [1] [1]: https://en.wikipedia.org/wiki/WhatsApp https://en.wikipedia.org/wiki/WhatsApp

ssharp 10y ago
I'm assuming WhatsApp had a pretty clear growth trajectory to better justify that valuation. Yahoo has been stagnant for years.
- fullshark 10y ago
  I think it's also because WhatsApp had special value to FB as part of a strategic partnership.
- virmundi 10y ago
  The issue with WhatsApp is that it never had a sustainable business model. First it was free with the hope of monetizing. Then it was free for a year, but a buck afterwards (pretty good if you ask me). Then WhatsApp found many users could partake of the e-economy due to lacking debit/credit cards, so it went back to free with some idea of Corporate relationships paying for things. (http://www.investopedia.com/articles/personal-finance/040915/how-whatsapp-makes-money.asp http://www.investopedia.com/articles/personal-finance/040915...) While Yahoo has been stagnant, it makes money.
tiffanyh 10y ago
Yahoo!'s market cap is $34B [1]. Granted, most of that market cap value is tied up in the 15% ownership of Alibaba (market cap of $188B / yahoo's piece is $28B)[2][3] Makes for an interesting thought experience on what the actual value of core Yahoo! really is. And yes, $6-8B doesn't sound bad for a company with 1B unique vistors, but then again last year Yahoo! lost $4.4B [4] [1] https://www.google.com/finance?q=yahoo&ei=-o8jV7HsKoWMmAGQ1IjwBA https://www.google.com/finance?q=yahoo&ei=-o8jV7HsKoWMmAGQ1I... [2] http://www.google.com/finance?cid=658890 http://www.google.com/finance?cid=658890 [3] http://dealbook.nytimes.com/2015/01/27/how-yahoos-spinoff-of-its-alibaba-stake-will-work/ http://dealbook.nytimes.com/2015/01/27/how-yahoos-spinoff-of... [4] http://www.google.com/finance?q=NASDAQ%3AYHOO&fstype=ii&ei=FJEjV7nbE8mpmAHHmY6YDA http://www.google.com/finance?q=NASDAQ%3AYHOO&fstype=ii&ei=F...
sourcd 10y ago
Who wants to catch a falling knife [1] ? [1] http://wiki.fool.com/Falling_knife http://wiki.fool.com/Falling_knife

by devy 10y ago

ssharp 10y ago

I'm assuming WhatsApp had a pretty clear growth trajectory to better justify that valuation. Yahoo has been stagnant for years.

fullshark 10y ago
I think it's also because WhatsApp had special value to FB as part of a strategic partnership.
virmundi 10y ago
The issue with WhatsApp is that it never had a sustainable business model. First it was free with the hope of monetizing. Then it was free for a year, but a buck afterwards (pretty good if you ask me). Then WhatsApp found many users could partake of the e-economy due to lacking debit/credit cards, so it went back to free with some idea of Corporate relationships paying for things. (http://www.investopedia.com/articles/personal-finance/040915/how-whatsapp-makes-money.asp http://www.investopedia.com/articles/personal-finance/040915...) While Yahoo has been stagnant, it makes money.

tiffanyh 10y ago

Yahoo!'s market cap is $34B [1]. Granted, most of that market cap value is tied up in the 15% ownership of Alibaba (market cap of $188B / yahoo's piece is $28B)[2][3] Makes for an interesting thought experience on what the actual value of core Yahoo! really is. And yes, $6-8B doesn't sound bad for a company with 1B unique vistors, but then again last year Yahoo! lost $4.4B [4] [1] https://www.google.com/finance?q=yahoo&ei=-o8jV7HsKoWMmAGQ1IjwBA https://www.google.com/finance?q=yahoo&ei=-o8jV7HsKoWMmAGQ1I... [2] http://www.google.com/finance?cid=658890 http://www.google.com/finance?cid=658890 [3] http://dealbook.nytimes.com/2015/01/27/how-yahoos-spinoff-of-its-alibaba-stake-will-work/ http://dealbook.nytimes.com/2015/01/27/how-yahoos-spinoff-of... [4] http://www.google.com/finance?q=NASDAQ%3AYHOO&fstype=ii&ei=FJEjV7nbE8mpmAHHmY6YDA http://www.google.com/finance?q=NASDAQ%3AYHOO&fstype=ii&ei=F...

sourcd 10y ago

Who wants to catch a falling knife [1] ? [1] http://wiki.fool.com/Falling_knife http://wiki.fool.com/Falling_knife