Since Facebook went on an bought Whats App for $19bn , i have been wanting to write on how such actions are over inflating the IT market and might be a cause for future disasters. What brought this back to my head was recent announcement by Apple that it has purchased Beats for $3bn !!
So figure this out , Beats a company with a product , sales and profits is worth $3bn , while a company that does not make any profits , no sales is worth $19bn !!
This just made me realise how important we “The users” of apps such as Whats app , are becoming and having access to us and having access to our contacts, picture etc , is becoming invaluable that companies are ready to pay a high premium to get to us. I think i read some where in an article where someone has done the math Facebook paid $42/user !!
Although months have passed and we are yet to see how Facebook is going to leverage the power within its hands and how it is going to tap to the 400Million+ users on Whats app to turn this into a revenue generating machine,that is going to be certainly a scene worth waiting for .