it's moved FBs share price up by more than 19bn, so it makes sense financially! They're buying the youth market. So tat begs the question, what's MrC doing with it??
Pmsl when I saw this last night. How cam a company which produces nothing find 19bn of anything resembling money to buy another company which produces nothing. Ponsy (spelling) scheme written all over it....do you think Zutterbloke had an email from a nigerian princess about funds she'd share?!
It's so difficult to put a true value on these sorts of things. The virtual world has changed the definition of value in many ways. As a respected American business man said recently - you don't want to spend your whole time on twitter talking about your business - you want to get others to start talking about it. Oh wait, we are all talking about whatsap - how many of us hadn't even heard of it on Monday?
No physical product though, they just shuffle numbers around. Facebook creates a network, whatsap does a similar thing - unlike Facebook it at least charges for its service. Facebook is also a promotional platform.
Sorry. Rubbish. FB creates nothing other than arrogant individuals who cant stop telling everyone else how great they are or how life has treated them shitly. Or click like if you hate cancer Its responsible for more bullying than any playground, more loss of productivity that the labour unions in the 70's and yet does nothing of use. I use it all the time :wink:
I've never understood why people don't think Facebook makes money or has value. Sponsored links and stories earn income, as do commercial pages. It was necessary to create a large network before it had value as an advertising platform - it's pretty much the same way google made money initially. It's a natural progression from tv advertising.
Ponsey scheme...pyramid scheme...scam whatever you want to call it. Even the most sophisticated businesses cant track click thru to dale ratios accurately, nor can they ID exactly what made someone take that decision to buy. Its fear of non conformity, and relative cheapness of upfront spend, that convinces business to spend
I'd just like to see the business model and plan for buying WhatsApp. Google and FB sell advertising, that is how they make money. There is no advertising on WhatsApp. To get your investment back from the iTunes store would require the earth to either breed a lot more rapidly, or be invaded by aliens. But if you fill WhatsApp with advertising, a competitor will come along and the kids will stop using it. It is the dot com boom of 2000 all over again. It's the hot thing, but it's all Dutch bulbs. There is no way it was worth £19bn.
I was wondering that too Glid... the only thing I could think of was that maybe they would analyse the message content from WhatsApp to target the advertising on FB itself? The data content (both live and historic) must have significant value or it just makes no sense. Actually - it STILL makes no sense Cheers, Dom
