As Facebook's $19 Billion Whatsapp Purchase Crashes (And May Be Hacked), Its Competitor Is Exploding

Tyler Durden's picture

Update: after 3 or so hours of downtime, Whatsapp is Backapp. For now. Then it may be Whatsdownn again...

* * *

It has been an inauspicious beginning for the most ridiculous internet purchase since the last dot com bubble - Facebook's $19 billion acquisition of Whatsapp. Several hours ago, Whatsapp left its 400+ million users (each of which cost Facebook almost $50) in the dark, after the service went offline and has yet to provide a reason for the crash.

The only status update released by Whatsapp was the following tweet:

One would think $19 billion buys some grammar lessons...

So while Facebook's newly acquired subs are scrambling to figure out why they cant send a text message halfway around the world for free, and are considering using the iMessenger service, which would also achieve the same result, also for free, one well known hacking group, Anonymous, has implied it may be involved in the crash.

Needless to say, adding insult to corporate sellout inury for Whatsapp's users would be a Snapchat like hacking which exposes millions of crotchshots for all to see. Which perhaps explains why while Whatsapp is scrambling to get back up, one clear winner has already emerged: Telegram (based in Berlin, Germany) is getting 100 new registrations…PER second!

At this pace, and assuming there are greater than Facebook fools out there, it will be worth over $1 trillion in mere months.

And now back to the regularly scheduled lessons in barriers to entry. And lack thereof.

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VD's picture

i'm scrapping Whatsapp (which i've used for a few years) for anything else!

johnQpublic's picture

laughing

so

hard

stomach cramps

localsavage's picture

Zuckerberg should have stuck to stealing his businesses.

NemoDeNovo's picture

+1000 for that one, but ain't that the 'muriKan way, why actually "create" something when you can just steaal it and call it your own, we are in the time of NO Personal Responsibility and ZERO Consequences for our actions....

FORWARD Comrades!!  

James_Cole's picture

the most ridiculous internet purchase since the last dot com bubble - Facebook's $19 billion acquisition of Whatsapp.

Probably the most ridiculous of all time, rev of 40m$ was it?

been reported that Mark Zuckerberg and WhatsApp founder Jan Koum negotiated the acquisition while they shared a box of chocolate covered strawberries. It’s just another interesting sidebar to this story as we wait to see if their secret formula as applied to revenues, user adoption rates, and employee utilization ultimately proves that their $19B math indeed works.

Yep, very 'interesting'

Z "hey dude how much you want for your company man?"

K "100 billion man."

Z "Whoa dude, slow down that's way too much, here have a chocolate covered strawberry."

K "Wow sweet, thanks!"

Z "Yeah so like, what you think 19B cash/stock?"

K "Can I keep the strawberries?"

Z "19B + strawberries"

K "Fuck yeah, let's do this."

philosophers bone's picture

How much did Morgan Stanley get? Whatsapp's "independent" financial advisor who led the FB initial public offering!!

GoldMeUp's picture

Oh and to think that YouTube was purchased for just $1 billion.  You know, the site that completely dominates the video sharing market and has ridiculous potential for advertising revenues, given that it can show video advertisements.  WhatsApp is a piece of shit.  I bet a majority of those 400 million users are bots.

zerozulu's picture

European used Whatsapp because it was not Google not Facebook. Now they will switch to another app and 19 billions goes poof.

NoDebt's picture

Makes sense.  I never heard of it over in the US (admittedly I don't lead much of a digital life).

For $19 billion Zuck couldn't have created his OWN free messaging service and auto-enrolled every FB user in it??

Oh well.  Let's try to look at the bright side of this- Zuck just lost $19 BILLION dollars.  Couldn't have happened to a nicer douchebag.

garypaul's picture

That's what I can't understand. Facebook has scores of the best programmers.

BTW, think of how easy it will be for shady people to do money laundering now. Just create some half-assed 'app' and swap it for millions and millions (no need for real estate, casinos, etc. the usual routes)

williambanzai7's picture

Facebook has morons who cannot design anything from scratch.

Exhibit A: FaceBook Phone

Exhibit B: Instagram

Indian_Goldsmith's picture

Facing issues while syncing the whatsapp servers with the facebook direct line to the NSA is understandable. Don't worry folks, just a one time outage. The NSA will ensure you face no future problems in communicating with your aquaintances. They don't want you going back to poigeon posts. Those damn pigeons are not cooperative at all!!! Not even in the name of national security. 

Tim_'s picture

Mark Zuckerberg and Jan Koum are both jews.

thorgodofthunder's picture

You're a disgusting racist fool. I was taught to have pity on people like you but it's difficult.

Woodhippie's picture

That's like being disgusted someone has the nerve to say the Pope is Catholic.

Crisismode's picture

So,

let me get this straight.

If someone is a jew,

and you call them a jew,

you are being racist?

And,

If someone is a muslim,

and you call them a muslim,

you are being racist?

Please explain the logic of that for me . . .

Antifaschistische's picture

all my Asian friends switched to wechat over a year ago...and I actually found it to be a "friendlier" app.

RECISION's picture

In my circle it is Viber.

Was very pleased when I heard that Facebook had bought a messaging service that it was Whatsapp instead.

All that the giant vampire-corps do when they make a buy-out, is deliver the kiss of death.

The Mist's picture

In Europe WhatsApp is huge and we don't have unlimited texts (personally I have 100 texts a month in my bundle, so I do really need an internet-based chat)

Though, since yesterday the majority of my friends has already changed to Telegram.

 

Bye WhatsApp...

TruthInSunshine's picture

Fucking retarded dot.com bubble 2.0

19 billion USD for a stupid, fucking company that was already redundant and vestigial by the time 2008 rolled around since just about every cellphone' carrier provides unlimited texting per their price plan bundles.

I am going to LOVE watching all the morons who have no comprehension of what Bernanke really did get crucified when this complete & total fraud of a "market" get blow torched.

dobermangang's picture

I always thought Excite@Home buying Blue Mountain Arts(an online greeting card company) for 780 million dollars in cash and stock was the worst dot com deal ever.  Eventually, the founder bought his company back for 20 million bucks.

http://news.cnet.com/ExciteHome-buys-online-greeting-card-site-for-780-m...

Mattel buying The Learning Company was an epic disaster too.  What was Mattel thinking???

http://www.nytimes.com/2000/04/04/business/mattel-decides-to-put-on-sale...

Yahoo buying Broadcast.com was another disaster.

http://money.cnn.com/1999/04/01/deals/yahoo/

Facebook buying Whatsapp probably will top them all as the worst deal ever.  19 billion could really buy you some nice profitable companies.

scrappy's picture

AOL - APP.

Ah, the memories.

Facebook is a black hole aol.

Hola!

jbvtme's picture

zuckerberg=jacob greenberg grandson of davy rockefeller

Hooter Shaker's picture

Those 2 look nothing alike.  I love a good conspiracy but hate disinformation.  Don't believe everything you read on the internet. 

johnQpublic's picture

ok

i'm better now

so tell me more about this app based on a budweiser promotion?

http://www.youtube.com/watch?v=tauYnVE6ykU

Spitzer's picture

Every Asian bird I meet has some variation of Wazzap that they want me to join.

"Line" is one

"WeChat" is another 

When this blows up, it will look so good on ZuckerFace. Fucking numpty... And he has an Asian wife too. She never filled him in on this ? Must have been an westernized Asian...

HulkHogan's picture

can we blame this on the weather? 

resurger's picture

come scrap my ballz

booboo's picture

Relax, they just had reboot the system after the NSA uplink was confirmed.

Jumbotron's picture

Facebook had better hope like hell they never come up with the cure for ADHD......or narcissm for that matter.

Although.....it looks like boredom and loneliness are here to stay.  So it would be a slight net gain even if they do find a cure.

resurger's picture

What's down bitchez?

vortmax's picture

Anonymous: the perfect boogeyman. 

Truther's picture

Wasssssssuuuuuuppppppp?

Caviar Emptor's picture

Faazbewk ha been bery bery good to mee

ebworthen's picture

Tech. bubble part two!

Anyone nostalgic for 2000 A.D.?

Spastica Rex's picture

Yes.

Experienced 1.0 living in Seattle.

There'll be some cheap office furniture and second hand IT on Craigslist sooner or later, I reckon.

Caviar Emptor's picture

Pets.com, the globe.com, drkoop.com, geocities.com, webvan...had em all just like Jimmy Cramer told me to

Spastica Rex's picture

You forgot mylackey.com and homegrocer.com.

Those were two of my favorites.

Mylackey.com allowed you to rent menial servants online. Homegrocer.com allowed you to buy food without leaving your Belltown apartment.

Caviar Emptor's picture

Love it! Such great nostalgia.
And many have forgotten that dozens of dubious "internet infrastructure" stocks were valued above $300/share! Juniper, Broadcom, GIga Networks, JDS Uniphase, PMC Sierra..

philosophers bone's picture

Also you could spend your days in Mom's basement at the computer, cock in hand. Hell, forget nostalgia, things haven't changed much for many.

Jlasoon's picture

Sure "beats" working. Some of you need to cut your cost of living and start living. 

RafterManFMJ's picture

I'm still holding my 50,000 shares of pets.com - I'm confident it'll rebound soon.

Make_Mine_A_Double's picture

There is no doubt..

I'm calling a Pets.com top of the market FULL RETARD peak right.....NOW!!

 

MsCreant's picture

You know what they need? The Whatsapp Doc?