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The what'sapp acquisition is rational in our current economy. 1) what'sapp users are in places Facebook can't hit. Think of how intense of a data application F
by josh2600 13y ago
The what'sapp acquisition is rational in our current economy.
1) what'sapp users are in places Facebook can't hit. Think of how intense of a data application Facebook is and think about accessing it in a country without adequate internet access. What'sapp sold for so much money because of the j2me app they wrote.
2) paying $35/user is looking about 10 years out in monetization, which is not an irrational time window at that scale. If FB can payback the cost of the what'sapp acquisition over the next 10 years, it will have been worth it (other companies make 10 year infrastructure investments all the time. Hell AT&T pours $20B into their network every year and will rip and replace most of their network every 7 years).
In short, what'sapp is rational in the current game theory of our world. Evaluating the present with the rubrics of the past is a fool's errand in a bubble economy.