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Virtual business buys an other one with virtual money. WTF? Facebook buys WhatsApp using its own shares. My point is that the value of the company in stock exchange is virtual. Yes, somebody is willing to buy part of the company defined in the exchange. The price of the WhatsApp was more than the value of top five in Helsinki stock exchange companies. And where is the issue? The value of the Facebook defined in NASDAQ. Is there a bubble?

Facebook's earning model is very simple, they are selling adds. FB's problem is that the teens which are the trendsetters are leaving the service. WhatsApp's business model is simple, 1st year free, after that 0.99$ per year. Currently they are having 450 million users, so it is quite easy to calculate the revenue. And the user base is growing fast. The interesting thing is that they say no to the ads. It is clear why FB is buying this company, they want the users. Other question I that when ads are coming to WhatsApp service.

Are 450 million users worth of 16B$? Luckily for Mr Z, he is spending virtual money which is in theory in NASDAQ. I smell a bubble.
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