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If there are no other bidders, it either sells for what the founders/VCs value it at, or it doesn't sell at all. So you are right, that if Koum/Acton valued it
by saosebastiao 13y ago
If there are no other bidders, it either sells for what the founders/VCs value it at, or it doesn't sell at all. So you are right, that if Koum/Acton valued it at billions and could convince some company that it was worth billions (while not having the "proof" that anybody else valued it at billions), then it would sell for billions. Not having proof is a pretty poor negotiating position through.
- nostrademons 13y agoThey were profitable and cash-flow positive, so they just wouldn't sell at all and choose to remain independent. The story of how they sold the company has been reported in the press, and the valuation was arrived at via comparison with Twitter's $30B public-market valuation. WhatsApp had roughly 2/3 as many users as Twitter; they are in similar industries, so it makes sense that its valuation should be roughly 2/3 as much.