Facebook stocks fall 2.64% after $19bn WhatsApp acquisition deal
Washington, Feb. 20 : Facebook stocks reportedly fell 2.64 percent soon after it announced its plans to buy popular messaging service WhatsApp for a total of 19 billion dollars.
The deal, priced for a combined 16 billion dollars in cash and stock and additional 3 billion dollars in restricted stock units, apparently made the investors uneasy, who sent the shares down by 5 percent initially, before they recovered slightly.
According to Tech Crunch, the investors could be worried about potential dilution stemming from the deal, also, Facebook's spending such a huge bill to acquire user growth via WhatsApp, puts its own core strengths of high engagement under stress.
However, Facebook CEO Mark Zuckerberg and WhatsApp CEO Jan Koum managed to calm fears and pull the share price up a bit as they discussed how the latest acquisition would focus on growth rather than monetization.
Zuckerberg has assured that the messaging service, with about 450 million monthly users, would not have ads as it was not the right way to monetize messaging services.
Facebook CFO David Ebersman noted that WhatsApp would not prioritize further roll out of the 1 dollar-a-year subscription fee it currently charges in some but not all countries.
The incredibly expensive deal is more to do with Facebook's aspirations for growth, especially in mobile and non-US markets, the report added.
--ANI (Posted on 20-02-2014)
Share this Post:
Information on States of India:
Andaman Nicobar | Andhra Pradesh | Assam | Bihar | Chandigarh | Chhattisgarh | Dadar Nagar Haveli | Daman Diu | Delhi | Goa | Gujarat | Haryana | Himachal Pradesh | Jammu Kashmir | Jharkhand | Karnataka | Kerala | Lakshadweep | Madhya Pradesh | Maharashtra | Manipur | Meghalaya | Mizoram | Nagaland | Orissa | Pondicherry | Punjab | Rajasthan | Sikkim | Tamil Nadu | Tripura | Uttar Pradesh | Uttaranchal | West Bengal
INDIA REGIONAL MAPS:
Andhra Pradesh Travel Map | Bihar Travel Map | Goa Travel Map | Gujarat Travel Map | Haryana Travel Map | Himachal Pradesh Map | Karnataka Travel Map | Kerala Travel Map | Maharashtra Travel Map | Punjab Travel Map | Rajasthan Travel Map | Sikkim Travel Map | Tamil Nadu Travel Map | Uttar Pradesh Travel Map | West Bengal Travel Map |
MORE MAPS OF INDIA:
INDIA CITY MAPS:
KERALA TRAVEL MAPS: