4 ms·

Muscled? I mean... not to rain on anyone's parade. Perhaps someone just came to their senses? 19 billion dollars, for a messenger app, is more than just a l

by moe 13y ago

Muscled? I mean... not to rain on anyone's parade. Perhaps someone just came to their senses? 19 billion dollars, for a messenger app, is more than just a little bit ridiculous. It's the kind of ridiculous that will be a runner-up in wikipedia for most idiotic business move ever.

nostrademons 13y ago
People thought the same about YouTube, but that turned out to be a brilliant (and very profitable) move. Then again, they also thought the same about AOL/TimeWarner, and they were absolutely right then. It's usually pretty futile to try to predict the future. I can see Zuck's reasoning with the Whatsapp purchase, though, and I don't think he's insane. He and Larry probably understand the structure of the tech industry a lot better than most people.
- enneff 13y ago
  The way I see it: Facebook's edge is its social graph. WhataApp had independently built a massive social graph, just like Instagram did. Facebook simply cannot afford to not acquire these companies.
- fractalsea 13y ago
  YT was bought for $1.65bn in shares which is an order of magnitude less.
  - declan 13y ago
    Exactly. And I recall that some of that was held back in case Viacom won the copyright lawsuit.
- mgkimsal 13y ago
  "He and Larry probably understand the structure of the tech industry a lot better than most people." They don't need to understand it - they define it.
- halviti 13y ago
  Google already had a solid youtube competitor. The primary reason for the acquisition was not for the userbase, but rather because youtube was being sued by the entertainment industry, and by google stepping in to take over and fight the legal battle, they managed to preserve the future of online video. It was definitely the right move, but this situation can't be compared to the WhatsApp acquisition.
  - TazeTSchnitzel 13y ago
    Solid? I'm sorry, I used Google Video at the time. It was far from it.
    - tehwebguy 13y ago
      Right, and there wasn't a community on Google Video, there was (and is) on YouTube.
      - TazeTSchnitzel 13y ago
        Exactly. Google Video was an average video host. YouTube was the community it is today, though it didn't have the ad programme.
netcan 13y ago
Think about it this way: 19 billion dollars for a messenger app doesn't happen without at least two very motivated bidders competing.

by moe 13y ago

nostrademons 13y ago

People thought the same about YouTube, but that turned out to be a brilliant (and very profitable) move. Then again, they also thought the same about AOL/TimeWarner, and they were absolutely right then. It's usually pretty futile to try to predict the future. I can see Zuck's reasoning with the Whatsapp purchase, though, and I don't think he's insane. He and Larry probably understand the structure of the tech industry a lot better than most people.

enneff 13y ago
The way I see it: Facebook's edge is its social graph. WhataApp had independently built a massive social graph, just like Instagram did. Facebook simply cannot afford to not acquire these companies.
fractalsea 13y ago
YT was bought for $1.65bn in shares which is an order of magnitude less.
- declan 13y ago
  Exactly. And I recall that some of that was held back in case Viacom won the copyright lawsuit.
mgkimsal 13y ago
"He and Larry probably understand the structure of the tech industry a lot better than most people." They don't need to understand it - they define it.
halviti 13y ago
Google already had a solid youtube competitor. The primary reason for the acquisition was not for the userbase, but rather because youtube was being sued by the entertainment industry, and by google stepping in to take over and fight the legal battle, they managed to preserve the future of online video. It was definitely the right move, but this situation can't be compared to the WhatsApp acquisition.
- TazeTSchnitzel 13y ago
  Solid? I'm sorry, I used Google Video at the time. It was far from it.
  - tehwebguy 13y ago
    Right, and there wasn't a community on Google Video, there was (and is) on YouTube.
    - TazeTSchnitzel 13y ago
      Exactly. Google Video was an average video host. YouTube was the community it is today, though it didn't have the ad programme.

netcan 13y ago

Think about it this way: 19 billion dollars for a messenger app doesn't happen without at least two very motivated bidders competing.