Description: In a major deal, Facebook has bought an instant chat service WhatsApp for an astounding $19 billion US.  This is a tremendously high price for a recent startup company.

Source: CBC

Date: Feb 20, 2014

Link:  http://www.cbc.ca/player/News/Business/ID/2438554742/

Questions for Discussion:

1. How will you defend Facebook’s purchase of WhatsApp for $19 billion?
2. What are the underlying assumptions in the valuation of WhatsApp?
3. How can Facebook commercialize the high user numbers of WhatsApp?