WhatsApp – is it worth it?

whatsappWhy exactly is WhatsApp worth $19bn (£12bn) to Facebook? After all, that is more than the current valuations of the UK retailer Next, the publishing giant Pearson, or the commercial television business ITV. Those businesses earn quite chunky profits, unlike the fast-growing messaging app.

I have been given all sorts of theories about why the deal makes sense. The Moshi Monster tycoon Michael Smith tweets this: “Messaging Apps are extremely valuable when games, commerce, news etc sits atop. Look at Line & WeChat.”

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