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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 | 4466336 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 | 4466340 johnQpublic
johnQpublic's picture




stomach cramps

Sat, 02/22/2014 - 18:53 | 4466366 localsavage
localsavage's picture

Zuckerberg should have stuck to stealing his businesses.

Sat, 02/22/2014 - 18:57 | 4466381 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 | 4466406 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 | 4466441 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 | 4467172 gmrpeabody
gmrpeabody's picture



Sun, 02/23/2014 - 06:51 | 4467455 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 | 4466444 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 | 4466592 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 | 4466616 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 | 4466728 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 | 4466828 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 | 4467150 Tim_
Tim_'s picture

Mark Zuckerberg and Jan Koum are both jews.

Sun, 02/23/2014 - 08:57 | 4467532 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 | 4467758 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 | 4468785 Crisismode
Crisismode's picture


let me get this straight.

If someone is a jew,

and you call them a jew,

you are being racist?


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 | 4466851 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 | 4467459 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 | 4467543 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 | 4466445 TruthInSunshine
TruthInSunshine's picture

Fucking retarded 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 | 4466722 williambanzai7
williambanzai7's picture

Sat, 02/22/2014 - 19:46 | 4466472 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.

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

Yahoo buying was another disaster.

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 | 4467303 scrappy
scrappy's picture


Ah, the memories.

Facebook is a black hole aol.


Sat, 02/22/2014 - 21:13 | 4466713 fxrxexexdxoxmx
fxrxexexdxoxmx's picture



Sat, 02/22/2014 - 21:56 | 4466826 jbvtme
jbvtme's picture

zuckerberg=jacob greenberg grandson of davy rockefeller

Sun, 02/23/2014 - 11:07 | 4467657 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 | 4466368 johnQpublic
johnQpublic's picture


i'm better now

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

Sat, 02/22/2014 - 19:58 | 4466499 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 | 4466372 HulkHogan
HulkHogan's picture

can we blame this on the weather? 

Sun, 02/23/2014 - 12:55 | 4467859 0b1knob
0b1knob's picture

Bush's fault....

Sat, 02/22/2014 - 18:53 | 4466365 resurger
resurger's picture

come scrap my ballz

Sat, 02/22/2014 - 19:28 | 4466436 booboo
booboo's picture

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

Sat, 02/22/2014 - 22:25 | 4466890 Jumbotron
Jumbotron's picture

Facebook had better hope like hell they never come up with the cure for ADHD......or narcissm for that matter. 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 | 4466339 resurger
resurger's picture

What's down bitchez?

Sat, 02/22/2014 - 18:49 | 4466345 Its Only Rock N Roll
Its Only Rock N Roll's picture


Sat, 02/22/2014 - 18:51 | 4466352 vortmax
vortmax's picture

Anonymous: the perfect boogeyman. 

Sat, 02/22/2014 - 18:53 | 4466367 Caviar Emptor
Caviar Emptor's picture

WhatsApp WazCrap.

Sat, 02/22/2014 - 18:54 | 4466371 Truther
Truther's picture


Sat, 02/22/2014 - 18:56 | 4466377 Caviar Emptor
Caviar Emptor's picture

Faazbewk ha been bery bery good to mee

Sat, 02/22/2014 - 18:59 | 4466384 ebworthen
ebworthen's picture

Tech. bubble part two!

Anyone nostalgic for 2000 A.D.?

Sat, 02/22/2014 - 19:11 | 4466401 Spastica Rex
Spastica Rex's picture


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 | 4466404 Caviar Emptor
Caviar Emptor's picture, the,,, webvan...had em all just like Jimmy Cramer told me to

Sat, 02/22/2014 - 19:13 | 4466411 Spastica Rex
Spastica Rex's picture

You forgot and

Those were two of my favorites. allowed you to rent menial servants online. allowed you to buy food without leaving your Belltown apartment.

Sat, 02/22/2014 - 19:25 | 4466428 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 | 4466452 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 | 4466595 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 | 4466929 RafterManFMJ
RafterManFMJ's picture

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

Sat, 02/22/2014 - 19:04 | 4466393 Make_Mine_A_Double
Make_Mine_A_Double's picture

There is no doubt..

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


Sat, 02/22/2014 - 19:35 | 4466395 MsCreant
MsCreant's picture

You know what they need? The Whatsapp Doc?

Sat, 02/22/2014 - 19:47 | 4466477 Goldilocks
Goldilocks's picture

What's up doc? - Bugs Bunny and Elmer Fudd singing (0:45)

Sat, 02/22/2014 - 21:51 | 4466810 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 | 4466408 The Abstraction...
The Abstraction of Justice's picture


Sat, 02/22/2014 - 19:17 | 4466417 buzzsaw99
buzzsaw99's picture

$19B boondoggle.

Sat, 02/22/2014 - 19:34 | 4466449 Smuckers
Smuckers's picture


Sat, 02/22/2014 - 19:52 | 4466488 TacticalTrading
TacticalTrading's picture

from the top of:  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 | 4466503 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 | 4470006 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 | 4466569 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 | 4466610 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 | 4466575 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 | 4466580 Downtoolong
Downtoolong's picture

WhatsApp or WhatsCrapp?

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


Sat, 02/22/2014 - 21:17 | 4466720 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 | 4466650 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 | 4466655 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 | 4466683 I Write Code
I Write Code's picture

can i'z pay for it wiz bitcoins?

Sat, 02/22/2014 - 21:17 | 4466721 fxrxexexdxoxmx
fxrxexexdxoxmx's picture

fonestar does

Sat, 02/22/2014 - 21:47 | 4466794 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 | 4466763 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 | 4466773 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 | 4467059 mumbo_jumbo
mumbo_jumbo's picture


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

Sat, 02/22/2014 - 22:24 | 4466822 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 | 4466825 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 | 4466972 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 | 4466875 22winmag
22winmag's picture


Sat, 02/22/2014 - 23:13 | 4467015 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 | 4467130 I Write Code
I Write Code's picture

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

Sun, 02/23/2014 - 00:50 | 4467178 Atomizer
Sun, 02/23/2014 - 01:01 | 4467188 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 | 4467302 Dre4dwolf
Dre4dwolf's picture

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

Sun, 02/23/2014 - 03:32 | 4467318 Caveman93
Caveman93's picture


Sun, 02/23/2014 - 04:20 | 4467366 Arturo
Arturo's picture

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

Sun, 02/23/2014 - 05:42 | 4467415 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 | 4467424 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 | 4467576 gatorengineer
gatorengineer's picture

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

Sun, 02/23/2014 - 14:07 | 4468073 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 | 4469916 Notarocketscientist
Notarocketscientist's picture

How many facebook clicks are BOTS?

Mon, 02/24/2014 - 02:40 | 4469996 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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