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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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Sat, 02/22/2014 - 18:46 | Link to Comment VD
VD's picture

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

Sat, 02/22/2014 - 18:48 | Link to Comment johnQpublic
johnQpublic's picture

laughing

so

hard

stomach cramps

Sat, 02/22/2014 - 18:53 | Link to Comment localsavage
localsavage's picture

Zuckerberg should have stuck to stealing his businesses.

Sat, 02/22/2014 - 18:57 | Link to Comment NemoDeNovo
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!!  

Sat, 02/22/2014 - 19:24 | Link to Comment James_Cole
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."

Sat, 02/22/2014 - 19:31 | Link to Comment philosophers bone
philosophers bone's picture

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

Sun, 02/23/2014 - 00:47 | Link to Comment gmrpeabody
gmrpeabody's picture

...Suckerberg

ROFLMAO...

Sun, 02/23/2014 - 06:51 | Link to Comment GoldMeUp
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.

Sat, 02/22/2014 - 19:32 | Link to Comment zerozulu
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.

Sat, 02/22/2014 - 20:30 | Link to Comment NoDebt
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.

Sat, 02/22/2014 - 20:37 | Link to Comment garypaul
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)

Sat, 02/22/2014 - 21:19 | Link to Comment williambanzai7
williambanzai7's picture

Facebook has morons who cannot design anything from scratch.

Exhibit A: FaceBook Phone

Exhibit B: Instagram

Sat, 02/22/2014 - 21:58 | Link to Comment Indian_Goldsmith
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. 

Sun, 02/23/2014 - 00:35 | Link to Comment Tim_
Tim_'s picture

Mark Zuckerberg and Jan Koum are both jews.

Sun, 02/23/2014 - 08:57 | Link to Comment thorgodofthunder
thorgodofthunder's picture

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

Sun, 02/23/2014 - 12:05 | Link to Comment Woodhippie
Woodhippie's picture

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

Sun, 02/23/2014 - 18:04 | Link to Comment Crisismode
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 . . .

Sat, 02/22/2014 - 22:08 | Link to Comment Antifaschistische
Antifaschistische's picture

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

Sun, 02/23/2014 - 07:05 | Link to Comment RECISION
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.

Sun, 02/23/2014 - 09:12 | Link to Comment The Mist
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...

Sat, 02/22/2014 - 19:32 | Link to Comment TruthInSunshine
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.

Sat, 02/22/2014 - 21:17 | Link to Comment williambanzai7
williambanzai7's picture

Sat, 02/22/2014 - 19:46 | Link to Comment dobermangang
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.

Sun, 02/23/2014 - 02:57 | Link to Comment scrappy
scrappy's picture

AOL - APP.

Ah, the memories.

Facebook is a black hole aol.

Hola!

Sat, 02/22/2014 - 21:13 | Link to Comment fxrxexexdxoxmx
fxrxexexdxoxmx's picture

+100

 

Sat, 02/22/2014 - 21:56 | Link to Comment jbvtme
jbvtme's picture

zuckerberg=jacob greenberg grandson of davy rockefeller

Sun, 02/23/2014 - 11:07 | Link to Comment Hooter Shaker
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. 

Sat, 02/22/2014 - 18:53 | Link to Comment johnQpublic
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

Sat, 02/22/2014 - 19:58 | Link to Comment Spitzer
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...

Sat, 02/22/2014 - 18:54 | Link to Comment HulkHogan
HulkHogan's picture

can we blame this on the weather? 

Sun, 02/23/2014 - 12:55 | Link to Comment 0b1knob
0b1knob's picture

Bush's fault....

Sat, 02/22/2014 - 18:53 | Link to Comment resurger
resurger's picture

come scrap my ballz

Sat, 02/22/2014 - 19:28 | Link to Comment booboo
booboo's picture

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

Sat, 02/22/2014 - 22:25 | Link to Comment Jumbotron
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.

Sat, 02/22/2014 - 18:47 | Link to Comment resurger
resurger's picture

What's down bitchez?

Sat, 02/22/2014 - 18:49 | Link to Comment Its Only Rock N Roll
Its Only Rock N Roll's picture

WTF LOL UPTMFTPOS!

Sat, 02/22/2014 - 18:51 | Link to Comment vortmax
vortmax's picture

Anonymous: the perfect boogeyman. 

Sat, 02/22/2014 - 18:53 | Link to Comment Caviar Emptor
Caviar Emptor's picture

WhatsApp WazCrap.

Sat, 02/22/2014 - 18:54 | Link to Comment Truther
Truther's picture

Wasssssssuuuuuuppppppp?

Sat, 02/22/2014 - 18:56 | Link to Comment Caviar Emptor
Caviar Emptor's picture

Faazbewk ha been bery bery good to mee

Sat, 02/22/2014 - 18:59 | Link to Comment ebworthen
ebworthen's picture

Tech. bubble part two!

Anyone nostalgic for 2000 A.D.?

Sat, 02/22/2014 - 19:11 | Link to Comment Spastica Rex
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.

Sat, 02/22/2014 - 19:11 | Link to Comment Caviar Emptor
Caviar Emptor's picture

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

Sat, 02/22/2014 - 19:13 | Link to Comment Spastica Rex
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.

Sat, 02/22/2014 - 19:25 | Link to Comment Caviar Emptor
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..

Sat, 02/22/2014 - 19:37 | Link to Comment philosophers bone
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.

Sat, 02/22/2014 - 20:29 | Link to Comment Jlasoon
Jlasoon's picture

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

Sat, 02/22/2014 - 22:41 | Link to Comment RafterManFMJ
RafterManFMJ's picture

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

Sat, 02/22/2014 - 19:04 | Link to Comment Make_Mine_A_Double
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!!

 

Sat, 02/22/2014 - 19:35 | Link to Comment MsCreant
MsCreant's picture

You know what they need? The Whatsapp Doc?

Sat, 02/22/2014 - 19:47 | Link to Comment Goldilocks
Goldilocks's picture

What's up doc? - Bugs Bunny and Elmer Fudd singing
http://www.youtube.com/watch?v=silJoHrXsIc (0:45)

Sat, 02/22/2014 - 21:51 | Link to Comment Clycntct
Clycntct's picture

You've crackd the code.

It's gonna be the new launch of the bama care program.

And bamy is paying the founding fee.

Sat, 02/22/2014 - 19:12 | Link to Comment The Abstraction...
The Abstraction of Justice's picture

Crotchshot!

Sat, 02/22/2014 - 19:17 | Link to Comment buzzsaw99
buzzsaw99's picture

$19B boondoggle.

Sat, 02/22/2014 - 19:34 | Link to Comment Smuckers
Smuckers's picture

Whatscrapp.

Sat, 02/22/2014 - 19:52 | Link to Comment TacticalTrading
TacticalTrading's picture

from the top of: http://www.whatsapp.com/android/  Android download link.

Please download the latest version of WhatsApp Messenger and enjoy our service free for 1 year! During, or after free trial period you can purchase service for $0.99 USD/year.

450 million people on a 1 year free trial, for $19B... What's that publication called... things that make you go Humm...

So, what is the conversion rate for things like this? Maybe I'll get a coouple of app builders and offer one with a 2 year free trial and then only $0.50 USD/Year. Think FB will pay me 8B for that, Will have to get 450 peeps first, but... details.. Oh wait, I just found 6 competitors, including Google Hangouts... I think my daugher uses that one... Never mind it was only $ 19 Billion

 

Sat, 02/22/2014 - 19:58 | Link to Comment duckarooni
duckarooni's picture

Considering viber was purchased last week by a japanese supermarket company for 500mln , the amount paid for whatsapp does seem a little excessive.

Mon, 02/24/2014 - 03:00 | Link to Comment matrix2012
matrix2012's picture

"Considering viber was purchased last week by a japanese supermarket company for 500mln , the amount paid for whatsapp does seem a little excessive."

 

A LIITLE EXCESSIVE ???   well, it's just a too humble qualifier

 

It's a HELLUVA exorbitantly excessive!!! lol

Sat, 02/22/2014 - 20:23 | Link to Comment johnQpublic
johnQpublic's picture

someday, instead of texting, they will invent a device that allows people to actually talk to each othr

Sat, 02/22/2014 - 20:35 | Link to Comment NoDebt
NoDebt's picture

That would require linguistic and interpersonal skills.  Too much work.

Mom?  MOM!  Can you make me a Hot Pocket?  Huh?  Ok, Ok, can you make me a Hot Pocket PLEASE.

Sat, 02/22/2014 - 20:24 | Link to Comment robnume
robnume's picture

Any dumbshit who uses "social media" - and that includes most of my own family - is a fucking TOOL! Amerika exporting dung? Sounds about right! FACEFUCK!!! Bwah ha ha!

Sat, 02/22/2014 - 20:26 | Link to Comment Downtoolong
Downtoolong's picture

WhatsApp or WhatsCrapp?

It gets worse, Cramer is all-in on Facebooks acquisition:

http://www.thestreet.com/story/12438341/1/jim-cramer-the-kids-know-whatsapp.html

 

Sat, 02/22/2014 - 21:17 | Link to Comment garypaul
garypaul's picture

Thanks for that link. That was really eye-opening. Everyone should check it out to see what a BS pumper JC really is. I had a "Newton's Apple" moment.

Sat, 02/22/2014 - 20:49 | Link to Comment NoWayJose
NoWayJose's picture

55 programmers working in a garage could come up with the same thing in less than a month for about $18.9 billion less... Wait now - they did!

Sat, 02/22/2014 - 20:52 | Link to Comment Downtoolong
Downtoolong's picture

“we hope to be back up and recovered shortly.”

While you’re waiting for WhatsCrapp, here’s a hilarious photo of Sheryl Sandberg chugging a bottle of Jim Beam for lunch in her office.

Sat, 02/22/2014 - 21:02 | Link to Comment I Write Code
I Write Code's picture

can i'z pay for it wiz bitcoins?

Sat, 02/22/2014 - 21:17 | Link to Comment fxrxexexdxoxmx
fxrxexexdxoxmx's picture

fonestar does

Sat, 02/22/2014 - 21:47 | Link to Comment Emergency Ward
Emergency Ward's picture

They can spray it with FLOK Suede paint and sell it off as new for twice the price to TWTR.

Sat, 02/22/2014 - 21:34 | Link to Comment Hobbleknee
Hobbleknee's picture

Whatsapp is government-owned spy ware and the $19 billion price tag is how Facebook pays Obama for doing commercials for them.

Sat, 02/22/2014 - 21:37 | Link to Comment Miss Expectations
Miss Expectations's picture

Jan Koum's (Jewish Ukrainian) $19,000,000,000 story is as flimsy as Mark Zuckerberg's Facebook dorm development fairytale. 

Sat, 02/22/2014 - 23:38 | Link to Comment mumbo_jumbo
mumbo_jumbo's picture

Miss,

i'm so jaded by all this money flowing into one group of hands that that was exactly my first thought....is one of the owners a member of the tribe?

Sat, 02/22/2014 - 22:24 | Link to Comment TheRideNeverEnds
TheRideNeverEnds's picture

So does this mean FB will only be up a couple dollars next week instead of many dollars? 

Sat, 02/22/2014 - 21:56 | Link to Comment Catullus
Catullus's picture

God, why didn't I buy shares in a company the suckerbergs own over half the voting shares.

The guy is a fucking asshole. And he'll walk away with billions, and morons will worship him because of it. But there's nothing like pissing away billions of capital on things that have no meaning.

Sat, 02/22/2014 - 22:57 | Link to Comment Platinum
Platinum's picture

The thing about making money that "easy", is that it is gone just as fast. Whatsapp is a perfect example of that. I doubt they'll be much left for FB or Zuckerberg (aside from hard assets) once the crash really hits. I wonder if Enron or Facebook stock will be cheaper in 10 years.

Sat, 02/22/2014 - 22:17 | Link to Comment 22winmag
22winmag's picture

AssFaceBook!

Sat, 02/22/2014 - 23:13 | Link to Comment mumbo_jumbo
mumbo_jumbo's picture

it is shocking that something is worth $19 billion that i've never ever heard of

Sun, 02/23/2014 - 00:26 | Link to Comment I Write Code
I Write Code's picture

$19 billion just isn't what it used to be.

Sun, 02/23/2014 - 00:50 | Link to Comment Atomizer
Sun, 02/23/2014 - 01:01 | Link to Comment teslaberry
teslaberry's picture

does it not occur to anyone that these massive highly dubious transactions of cash and stock are simply cover for moving money? 

essentially money laundering of one sort another with the legit exucse that you made a 'bad investment'. 

 

happens all the time in other industries, admittedly for lower amounts of 'cash and stock'. 

 

it strikes me that when an acquistion is beyond belief. it is. 

Sun, 02/23/2014 - 02:57 | Link to Comment Dre4dwolf
Dre4dwolf's picture

seriously if u just wana throw money away..... im right here

Sun, 02/23/2014 - 03:32 | Link to Comment Caveman93
Caveman93's picture

TCP/IP has KARMA!

Sun, 02/23/2014 - 04:20 | Link to Comment Arturo
Arturo's picture

Dont forget corruption. This is a way to get millions out of FB unnoticed.

Sun, 02/23/2014 - 05:42 | Link to Comment smacker
smacker's picture

Why is it that whenever I think about Facebook, an image emerges in my mind of a giant balloon that one day will simply explode and whither away.

I honestly cannot think of any Internet site that is more intrusive (apart from Google) and such a complete waste of time and money. The very idea that Mark Zuckerberg has become a billionaire on the back of it makes me sick.

Sun, 02/23/2014 - 05:52 | Link to Comment holsfhf
holsfhf's picture

Coup de etat if Apple buys out this little telgram app .. what a joke right .. The other way to lower the cah pile 

Sun, 02/23/2014 - 09:50 | Link to Comment gatorengineer
gatorengineer's picture

If you give something away, its intrinsically valueable these days.  Wait for Goodwills IPO.......

Sun, 02/23/2014 - 14:07 | Link to Comment nakki
nakki's picture

I posted this yesterday but thought it was worth repeating. NBC had a segment pertaining to Facebook. Before the US men's hockey team beat Russia in the shoot-out, the two areas where Olympic hockey were most talked about on Facebook were Scandinavia and INDIA. That tells you all you need to know about how fabricated Fakebook is. INDIA the new hothead of HOCKEY.

Mon, 02/24/2014 - 01:37 | Link to Comment Notarocketscientist
Notarocketscientist's picture

How many facebook clicks are BOTS?

Mon, 02/24/2014 - 02:40 | Link to Comment matrix2012
matrix2012's picture

Telegram is much superior than WhatsApp in all aspects. It's supporting sending various file formats not just pic files in big size eg. pdf  and so forth...

Telegram also has the Secret Chat whereas user can set the timing of the Self-Destruct message and change its encryption key. Ofc the fact that it does not belong to the known NSA's front-ends is definitely a big plus :-)

Yeah it also has better UI, emoticon collections, etc...

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