Facebook paid A$22b for What'sApp. What'sApp generated $10m in sales in 2013, and net loss $138m.
IMO, revenue is not that important, rather users are more valuable.
ZIP signed three strategic distribution agreements to acquire first 5.6m users.
ZIP has a target to reach 50m users over the first year.
Average revenue per user is conservatively valued at $2-$4.
For 5.6m user only, ZIP could generate over $11m in revenue which is similar to What'sApp 2013 revenue. ZIP market cap is A$24m compared with What'sApp of A$22b.
Facebook $22 Billion WhatsApp Deal Buys $10 Million in Sales
By Sarah Frier Oct 30, 2014 12:29 AM GMT+0800
The numbers are in for Facebook Inc.’s acquisition of mobile-messaging application WhatsApp Inc.: The social network paid $22 billion for a startup that generated $10.2 million in revenue last year.
In a regulatory filing yesterday, Facebook disclosed WhatsApp’s financial results for 2012 and 2013. The messaging service, which reached 400 million active users in December, generated less than 3 cents in revenue for each one last year. By comparison, Facebook paid $55 per user when it acquired the company. WhatsApp’s net loss was $138.1 million for 2013.
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