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Yes, but is WhatsApp really worth $19 billion?
The short answer is: No one knows. There are some financial scenarios in which WhatsApp could end up being "worth" (in a limited financial sense) a lot more than $19 billion. There are other scenarios in which it could end up being worth a lot less. The only answerable question right now is whether WhatsApp was worth $19 billion to Facebook.
And I think the answer is yes.
The bottom line:
This is a very bold move.
Like other bold moves, it might end up looking stupid, but it also might end up looking brilliant.
It's also a long-term move, a bet on what the future will look like five to 10 years from now, not next quarter.
In that way, this deal is a vintage Mark Zuckerberg move.
Zuckerberg continues to be one of the few CEOs (Jeff Bezos is another) who is willing to sacrifice near-term earnings and expose himself to short-term ridicule in order to make bold long-term bets. This approach has worked out great for Amazon And it has worked out great for Facebook so far.
In short, Facebook buying WhatsApp for $19 billion isn't stupid. It's just bold.
to gian more customer and make the company stronger
To gain more customers
and open up the accounts to each other easily by sharing it
to gain more customers. Because most people are on Facebook to look at other people's photos. instagram would make that easier for new customer base.
While FB operates through the Internet, Whatsapp connects its users through their phone connections. Thus FB, through buying Whatsapp, managed to gain access to this entire new customer base. Instagram on the other hand had gained in popularity with its ability to target the customers who prefered an interface that was purely visual. Again, Instagram is predominantly a cell phone based app, and FB, by taking it over, has performed a coup of sorts.