Was Facebook crazy to buy Whatsapp for $19.5 billion?40
Does the deal make sense? On one hand, it's logical - Whatsapp is one of the largest IM apps in the world that has over 400 million active users right now. Whatsapp is large in China, Europe, Russia, Canada, Brazil, Australia and many other places. Actually, it’s often used as a direct competitor to Facebook Messenger.
All in all, though, for Facebook this might make sense, as the social network continues its aggressive expansion. At $19.5 billion, Facebook has paid a tenth of its own market cap to buy Whatsapp, but the ends sometimes justify the means. Is this true for this deal, or was Facebook just crazy to spend so much on a simple messaging app? What do you think?