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Your analysis assumes that WhatsApp cost $0 to maintain and grow and that 2-day old infants are using WhatsApp, and ignores the fact that the vast majority of W
by ggg9990 8y ago
Your analysis assumes that WhatsApp cost $0 to maintain and grow and that 2-day old infants are using WhatsApp, and ignores the fact that the vast majority of WhatsApp users at the time of acquisition had not even paid the $1.
- sunstone 8y agoTrue enough. But the factors you mention are round off errors and "not material" as a steely eyed accountant would say. At the time of the buyout the "conversion ratio" of those that paid the $1 after a year would have been well established.
- ggg9990 8y agoIt's more than that -- in many of their biggest markets (e.g. India) they waived the $1 fee entirely so all of their users there were free. So you can't really figure out the conversion ratio because it was never tried.