WhatsApp? A Better question: WhatsUpp with Silicon Valley Again - Los Angeles Local News | FOX 11 LA KTTV

From Jeff Michael

WhatsApp? A Better question: WhatsUpp with Silicon Valley Again

Posted: Updated:

WhatsApp? Better question is WhatsUpp with Silicon Valley again? Facebook is buying WhatsApp for $19 Billion. The agreement includes $4 billion in cash, $12 billion worth of Facebook shares, and WhatsApp's founders and staff will be eligible for another $3 billion in stock grants to be paid out if they remain employed by Facebook for four years.

If you don't have it on your smartphone, WhatsApp is a great app for texting people anywhere in the world (give or take) where there is internet wireless.

The company, which has 55 employees doesn't use advertising for revenue and doesn't charge for the service; two of the reasons it's so popular. But, $16 Billion? As the New York Times reports, when you add in the restricted stock options, that comes out to the equivalent of $344 million per employee! It's a text messaging app! I know Mark Zuckerberg and Facebook have more money than they know what to do with but does this sound like Billionaire Monopoly to anyone else?

What Zuckerberg is doing, it seems, is buying up properties that threaten Facebook...even briefly threaten Facebook's popularity because what is a social networking site when its popularity begins to fade? (Ask MySpace. Heck, ask Norma Desmond!) The race and chase to stay relevant is a fast game. Facebook's revenue is just under $8 billion a year. If I'm a stockholder in FB (NASDAQ ticker), I might be getting a little nervous that my money is with a company that just paid twice its annual earnings for a nifty upstart with little visible sign of revenue.

Maybe Billionaire Monopoly isn't the game. Maybe it's Billionaire Poker. For now Facebook has enough chips to chase a questionable hand. How many new upstarts taking a seat at the table will Zuckerberg be able to spend his chips on?

  • Share ThisMore>>

  • Griffith Park Mountain Lion Found Sick, Possibly Poisoned

    Griffith Park Mountain Lion Found Sick, Possibly Poisoned

    Thursday, April 17 2014 3:26 PM EDT2014-04-17 19:26:14 GMT
    Rat poison may be responsible for the sorry condition of a wild mountain lion in LA's Griffith Park. The mountain lion is known to the National Park Service as ‘P-22'.
    Rat poison may be responsible for the sorry condition of a wild mountain lion in LA's Griffith Park. The mountain lion is known to the National Park Service as ‘P-22'.
  • myFOX Tech

    Tired, Sore Eyes? Enter: Gunnar Optiks Intercept

    Tired, Sore Eyes? Enter: Gunnar Optiks Intercept

    Thursday, April 17 2014 1:39 PM EDT2014-04-17 17:39:18 GMT
    I met the folks from Gunnar Optiks at CES this year and they had something new to show me. The Intercepts. I have a big head, these are big frames, it was kismet but do they work as good as they look? We'll see.
    I met the folks from Gunnar Optiks at CES this year and they had something new to show me. The Intercepts. I have a big head, these are big frames, it was kismet but would my eyes revel in this serendipitous confluence of events? We'll see.
  • Mich. judge to killer: 'I hope you die in prison'

    Mich. judge to killer: 'I hope you die in prison'

    Thursday, April 17 2014 9:42 AM EDT2014-04-17 13:42:06 GMT
    A Michigan judge goes off after a convicted killer mocked her victim's family during sentencing on Wednesday. Find out what made Judge John McBain say "I hope you die in prison."
    A Michigan judge goes off after a convicted killer mocked her victim's family during sentencing on Wednesday. Find out what made Judge John McBain say "I hope you die in prison."
Powered by WorldNow

KTTV FOX 11
1999 S. Bundy Dr.
Los Angeles CA 90025

Main: (310) 584-2000
News Tips? (310) 584-2025

Didn't find what you were looking for?
All content © Copyright 2000 - 2014 Fox Television Stations, Inc. and Worldnow. All Rights Reserved.
Privacy Policy | Terms of Service | Ad Choices