WhatsApp Sold To Facebook, Facebook’s purchase of fast-growing messaging startup WhatsApp for an eye-popping $US19 billion ($21 billion) has won approval from analysts, who said the deal made strategic sense as it will solidify the social network’s position as a leader in mobile.
Facebook shares closed up 2.3 per cent at $US69.63 after falling as much as 3 per cent in early trading as investors got over the initial shock of the deal’s value.
Facebook is the leading global social-sharing utility. Now, it has a significant opportunity to be the leading global communications utility
At least two brokerages downgraded their recommendations on Facebook to “hold” but the overwhelming majority of analysts remain positive on the stock.
Facebook is paying more than double its annual revenue for a chat program that has little revenue. The purchase price is slightly more than the market value of Sony Corp.