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Just for good measure................ Activison-Blizzard – $13.9B Alcoa – $12.2B American Airlines – $12.3B Akamai – $10.9B AmerisourceBergen – $15.9 Blac

Just for good measure................ Activison-Blizzard – $13.9B Alcoa – $12.2B American Airlines – $12.3B Akamai – $10.9B AmerisourceBergen – $15.9 Blackstone Group – $17.8B Campbell Soup – $13.6 Chesapeake Energy – $17.2B Chipotle – $17.1B Citrix Systems – $10.7B Coach – $13.5B Consolidated Edison (ConEd) – $16.2B Discovery Communicatons – $19.1B Dr. Pepper Snapple Group – $10.2B Expedia -$10.2B The Gap – $19B Fidelity – $15.8B Harley-Davidson – $14.1B Hertz – $11.5B Icahn Enterprises -$13.1B The J.M. Smucker Company – $10B Kohl’s – $11.1B Kroger – $19.4 Loews – $17B Macy’s – $19.6B Marriott International – $15.4B Mattel – $12B MGM Resorts – $12.7 Monster Beverage – $12B Moody’s – $17.08B News Corp – $10.27B Nielsen – $17.6B Nordstrom – $11.4B Progressive – $14.3B Ralph Lauren – $14.2B Red Hat – $11.1B Royal Caribbean Cruises – $11.4B Ryanair – $15.5B Sherwin-Williams – $19.4B Southwest Airlines – $14.7B Starwood Hotels & Resorts – $14.9B Symantec – $14.4B TD Ameritrade – $18.4B The Carlyle Group – $11.1B Tiffany & Co. – $11.4B Tyson Foods – $13.1B Under Armour – $11.4B Whole Foods Market – $19.3B Workday – $17B Xerox – $13.2B

prewett 13y ago
Sobering list :) But FB only paid $4B in cash, the rest is in stock. At a P/E of 111, I'd say FB is grossly overvalued. It's a great thing to swap overvalued pieces of paper for something, just ask AOL, which bought Time-Warner with worthless pieces of paper in 1999. AOL was a modem company in a world beginning to move to broadband. Time-Warner had actual physical cables in the ground and utility-style monopolies in most major cities, along with a bunch of movie/TV IP (if I recall correctly). Unfortunately for Time-Warner shareholders, management apparently assumed that pieces of paper labeled "stock" were equivalent to the limited-edition green and black pieces of paper labeled "$". I estimate FB paid <= $8.5B. Which is still pretty ridiculous. If I were the WhatsApp founders, I would start selling my FB stock ASAP and buying something with some staying power. Such as perhaps one of the companies on your list :)
mynameishere 13y ago
That list is restricted to companies at a similar capitalization to "WhatsApp". In contrast, Ford Motor Company is valued at 60 billion (about 3-4 times more than "WhatsApp"). I would suggest quite plainly that the trademark "Ford Motor Company" alone is worth more than the every part of the "WhatsApp" enterprise combined, including whatever technology they may have created, if any. Obviously the investment banking refugees working at Facebook aren't stupid, and I suspect they're going for the big kill, with other people's money as usual. Maybe "WhatsApp" will be the next big thing. Who cares? If I was writing a check out for 16 billion, it sure wouldn't be for the stupidest thing I've ever heard of. But...not my money.
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wtvanhest 13y ago
I have no idea if WhatsApp made sense financially, but you should be using enterprise values, not market caps because market caps do not consider the debt needed to run those companies. (EV) Enterprise Value = Debt + Market Cap in Equity For example, the first company on the list, Activision has an EV of about $22 bn. Nearly double its market cap. Alcoa is $19bn... Your point is still really valid, I was just pointing out the difference.
z-factor 13y ago
AMD - $2.7B

prewett 13y ago

Sobering list :) But FB only paid $4B in cash, the rest is in stock. At a P/E of 111, I'd say FB is grossly overvalued. It's a great thing to swap overvalued pieces of paper for something, just ask AOL, which bought Time-Warner with worthless pieces of paper in 1999. AOL was a modem company in a world beginning to move to broadband. Time-Warner had actual physical cables in the ground and utility-style monopolies in most major cities, along with a bunch of movie/TV IP (if I recall correctly). Unfortunately for Time-Warner shareholders, management apparently assumed that pieces of paper labeled "stock" were equivalent to the limited-edition green and black pieces of paper labeled "$". I estimate FB paid <= $8.5B. Which is still pretty ridiculous. If I were the WhatsApp founders, I would start selling my FB stock ASAP and buying something with some staying power. Such as perhaps one of the companies on your list :)

mynameishere 13y ago

That list is restricted to companies at a similar capitalization to "WhatsApp". In contrast, Ford Motor Company is valued at 60 billion (about 3-4 times more than "WhatsApp"). I would suggest quite plainly that the trademark "Ford Motor Company" alone is worth more than the every part of the "WhatsApp" enterprise combined, including whatever technology they may have created, if any. Obviously the investment banking refugees working at Facebook aren't stupid, and I suspect they're going for the big kill, with other people's money as usual. Maybe "WhatsApp" will be the next big thing. Who cares? If I was writing a check out for 16 billion, it sure wouldn't be for the stupidest thing I've ever heard of. But...not my money.

deleted 13y ago
[deleted]

wtvanhest 13y ago

I have no idea if WhatsApp made sense financially, but you should be using enterprise values, not market caps because market caps do not consider the debt needed to run those companies. (EV) Enterprise Value = Debt + Market Cap in Equity For example, the first company on the list, Activision has an EV of about $22 bn. Nearly double its market cap. Alcoa is $19bn... Your point is still really valid, I was just pointing out the difference.

z-factor 13y ago

AMD - $2.7B