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If Whatsapp puts $50B of Facebook value at risk by simply existing, that means that $50B had little value to begin with.
by reza_n 12y ago
If Whatsapp puts $50B of Facebook value at risk by simply existing, that means that $50B had little value to begin with.
- aetherson 12y agoI think that so far it suggests that that hypothetical $50B was worth $31B + whatever positive value WhatsApp has.
- austenallred 12y agoSaying that a product used by 500 Million people (that's ~7% of the population of planet Earth) earned its value by "simply existing" is a pretty hand-wavy. That's incredibly difficult to do.
- reza_n 12y agoI didnt really say that. I said that if it puts Facebook's value at risk, what exactly was that value? Why is it zero sum?
- _broody 12y agoThis. Facebook did really throw startup valuation out of whack starting with the Instagram acquisition and following up to Whatsapp. They appear to have no idea what they're doing with their money, they're in a rather vulnerable spot with their core business, and their demented frenzied spending seems to have infected everyone around them.
- krschultz 12y agoInstagram has turned out to be an amazing acquisition for Facebook. Facebook make >$12 billion dollars in 2014. You're saying Instagram wasn't worth 1 months revenue for Facebook? It's a double digit percentage of all time people spend interacting with Facebook's app constellation.