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posted by
LaminatorX
on Saturday February 22 2014, @12:00AM
from the It's-like-a-telegram-but-on-a-phone dept.
from the It's-like-a-telegram-but-on-a-phone dept.
siliconwafer writes:
"Facebook's purchase of WhatsApp has generated a lot of noise in the financial and tech industries, with some calling the purchase price 'down-right silly' and 'jaw-dropping', and others have said the price is fair, but question the strategy. Is the purchase price evidence that we're entering entering another tech bubble reminiscent of the 1990s? Some say no, while others believe that a bubble may exist only in social media, given that the Global X Social Media Index ETF has outperformed the NASDAQ over the past year."
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Have we entered another tech bubble?
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(Score: 3, Interesting) by TheRaven on Saturday February 22 2014, @06:56AM
The most plausible reason for the purchase that I've seen advanced is that Facebook bought WhatsApp with the intent of keeping it exactly as-is. A messaging application is not really a competitor for a social network, but it has a large customer base and the potential to grow into something that is. By freezing WhatsApp features at exactly their current level, Facebook can prevent this. It's not a good long-term strategy, because they'll need to keep buying potential competitors.
If this is the case, then anyone wanting to make some quick money should set up something like WhatsApp, create some buzz, get a million or so users, announce a load of new social media functionality that will appear in the next version, and sell to Facebook for an inflated price...
sudo mod me up