Latest News: Technology |  Celebrity |  Movies |  Apple |  Cars |  Business |  Sports |  TV Shows |  Geek

Trending

Filed under: News

 

Mark Zuckerberg: WhatsApp Was Worth Even More, Doesn't Need To Make Money

Feb 24 2014, 12:46pm CST | by

1 Updates
Mark Zuckerberg: WhatsApp Was Worth Even More, Doesn't Need To Make Money
 
 

YouTube Videos Comments

Full Story

Mark Zuckerberg: WhatsApp Was Worth Even More, Doesn't Need To Make Money

If Mark Zuckerberg was willing to pay $19 billion for WhatsApp — valuing it at around a tenth the size of Facebook itself — he must have a pretty good plan for recouping the cost of all that capital in fairly short order, right?

Nope. In a keynote interview at Mobile World Congress in Barcelona, Zuckerberg suggested that the mobile messenging app will enjoy a long grace period before it’s expected to start kicking in its fair share of the rent. In negotiations with WhatsApp cofounders Jan Koum and Brian Acton, he said, a key selling point was the proposition that “they can focus for the next five years or so purely on connecting more people.”

Five years! Compare that with Instagram, which introduced ads to its users’ streams less than 18 months after Facebook acquired it. And Instagram, at $715 million, was a relative bargain-bin pickup.

Or was it? Zuckerberg seems to think Facebook made out quite well in the transaction.

“I actually think that by itself it’s worth more than $19 billion, although it’s hard to make that case today because they have so little revenue compared to that number,” Zuckerberg said.

Well, yes.

His math is based not on how much WhatsApp is making now (although it is profitable from subscription fees alone) or on any existing plans to monetize it but strictly on how few services there are with the potential to attract 1 billion users, a goal it’s already nearly halfway to achieving.

There’s a chance that this is the one service that gets to 1 billion people but is not that valuable,” Zuckerberg said, but it’s not very likely. “Even just independently, I think it’s a pretty good bet.”

Zuckerberg promised that WhatsApp will be allowed to operate independently, and that the service is “absolutely not going to change.” Presumably he didn’t mean it won’t change at all, since just this morning the company announced plans to add voice calls to its offerings in the next few months.

Zuckerberg was also asked by an audience member whether the WhatsApp deal means Facebook is still a potential suitor for Snapchat, which it tried to acquire for $3 billion in November. Zuckerberg suggested it was no longer on the table: “After buying a company for $16 billion, you’re probably done for a while.”

Source: Forbes

 

iPad Air Giveaway. Win a free iPad Air.

You Might Also Like

Updates


Sponsored Update


Advertisement


More From the Web

Shopping Deals

 
 
 

<a href="/latest_stories/all/all/31" rel="author">Forbes</a>
Forbes is among the most trusted resources for the world's business and investment leaders, providing them the uncompromising commentary, concise analysis, relevant tools and real-time reporting they need to succeed at work, profit from investing and have fun with the rewards of winning.

 

 

Comments

blog comments powered by Disqus

Latest stories

Apple Directly Delivering Content
Apple Directly Delivering Content
The company developed their own delivery system in order to become independent
 
 
Chris Pratt Leads Guardians of the Galaxy To Interstellar Hit
Chris Pratt Leads Guardians of the Galaxy To Interstellar Hit
Guardians of the Galaxy's looking to make over $75 million this weekend, with over $11.2 million in the late night previews alone. Figures are still pouring in, but Chris Pratt's promoting the movie just like a Star-Lord.
 
 
Reggie Bush Not Slowing Down in 9th NFL Season
Reggie Bush Not Slowing Down in 9th NFL Season
Detroit Lions running back and nine-year NFL veteran Reggie Bush isn't slowing down, per the Lions' official website.
 
 
Tony Parker Signs 3-Year, $43.3M Extension
Tony Parker Signs 3-Year, $43.3M Extension
San Antonio Spurs point guard Tony Parker signed a three-year, $43.3 million extension on Aug. 1.
 
 
 

About the Geek Mind

The “geek mind” is concerned with more than just the latest iPhone rumors, or which company will win the gaming console wars. I4U is concerned with more than just the latest photo shoot or other celebrity gossip.

The “geek mind” is concerned with life, in all its different forms and facets. The geek mind wants to know about societal and financial issues, both abroad and at home. If a Fortune 500 decides to raise their minimum wage, or any high priority news, the geek mind wants to know. The geek mind wants to know the top teams in the National Football League, or who’s likely to win the NBA Finals this coming year. The geek mind wants to know who the hottest new models are, or whether the newest blockbuster movie is worth seeing. The geek mind wants to know. The geek mind wants—needs—knowledge.

Read more about The Geek Mind.