Dear Visitor,

Our system has found that you are using an ad-blocking browser add-on.

We just wanted to let you know that our site content is, of course, available to you absolutely free of charge.

Our ads are the only way we have to be able to bring you the latest high-quality content, which is written by professional journalists, with the help of editors, graphic designers, and our site production and I.T. staff, as well as many other talented people who work around the clock for this site.

So, we ask you to add this site to your Ad Blocker’s "white list" or to simply disable your Ad Blocker while visiting this site.

Continue on this site freely
You are here: Home / Computing / Google Exec: WhatsApp Not Worth It
Google Exec Says WhatsApp Not Worth What Facebook Paid
Google Exec Says WhatsApp Not Worth What Facebook Paid
By Seth Fitzgerald / CRM Daily Like this on Facebook Tweet this Link thison Linkedin Link this on Google Plus
Google may have been interested in buying WhatsApp prior to Facebook's acquisition, but when it was considering a deal, the acquisition would have amounted to $6 billion. Now Google's chief business officer, Nikesh Arora, is questioning the logic behind spending $19 billion on a small company.

Along with critiquing the WhatsApp deal, Arora also spoke about mobile advertising during a Morgan Stanley conference in San Francisco. Arora said the monetization of mobile platforms could eventually yield much more revenue than that provided by desktop ads, and companies that shift toward mobile will benefit greatly.

"The desktop world took the world of advertisers from tens of thousands to a few million," Arora said. "I think as we go forward, that a few million becomes tens of millions as mobility becomes more relevant."

Facebook's Expensive Deal

Had WhatsApp accepted Google's proposed acquisition deal, each one of its 55 employees would have been "worth" around $100 million. Since the deal that WhatsApp eventually made with Facebook was much larger, the social network paid an estimated $345 million per employee. That is not an efficient use of money, Arora said.

When the topic of mobile messaging apps came up at the Morgan Stanley conference, Arora said he did not agree with spending such exorbitant sums on a start-up.

"$500 million per employee? Is that a good use of our money?" Arora said. "Are you recommending we buy some Asian messaging service?"

Will WhatsApp Grow into $19 Billion?

We asked Jeff Kagan, an independent technology analyst, for his opinion on the acquisition of WhatsApp. He told us that while WhatsApp may not be worth $19 billion right now, it's likely Mark Zuckerberg is looking at WhatsApp as something that will continue to grow and eventually become worth the amount that Facebook spent on it.

"One good way to stay with the current flow is to spot early-stage companies in a hot space. Facebook thinks WhatsApp is that kind of company." Kagan said. "As for spending $19 billion on WhatsApp, I would guess that was pure Zuckerberg. WhatsApp may not be worth that much today, but to Zuckerberg it's all just play money anyway, like on a Monopoly board."

Tell Us What You Think


Like Us on FacebookFollow Us on Twitter

Over the past decade, hospitals have been busy upgrading their systems from paper to electronic health records. Unfortunately, spending so much on EHR may have left insufficient funds for security.
The British government officially blamed Russia for waging the so-called NotPetya cyberattack that infected computers across Ukraine before spreading to systems in the U.S. and beyond.
© Copyright 2018 NewsFactor Network. All rights reserved. Member of Accuserve Ad Network.