Daily Archives: February 20, 2014

Is $19bn a lot of money? It certainly sounds like it – that’s what Facebook thought WhatsApp was worth when it scooped up the messaging app on Wednesday.

The fate of social networks depends on being able to turn huge pools of users into a source of cash. So one way to assess whether Mark Zuckerberg got value for money is to look at how much he paid per WhatsApp user compared with the price of each person in other networks: 

There’s a hot messaging app with a global following that’s just asking to be acquired.

Whoops, sorry, that was yesterday, but what if we change the name to BBM? 

Sirgoo Lee, chief executive of the South Korean mobile messaging company Kakao, chuckles when asked about Facebook’s acquisition of rival WhatsApp for $19bn. “All I can say is that’s a lot of money,” he says.

While it has a strong presence in India and Hong Kong, WhatsApp is a marginal player in many parts of Asia writes Simon Mundy. Kakao, Japan-based LINE and China-headquartered WeChat dominate mobile messaging in their respective home territories, and are fighting for control of the market in southeast Asia. The Japanese internet company Rakuten, meanwhile, last month spent $900m on Viber, an Israeli company that provides similar free calling and messaging services.