Hey, ... news flash - FB buys What'sapp for 19bln. Shares down AH.

Wow.. whatapp worth 19 blns? 

whatsapp has 400m active users to pay $0.99 pa, that goes 2% yield for 19b investment....not exciting. Agree, it's damn expensive. If consider Amazon's trading at over 600x PE, then no, it's not expensive. 

not all for the 400m users were paid users some were installed before the paid version were out, upddated still can be used unless change mobile phone or mobile number only need reinstall......

I thought 1st year free, following year pay? 

I think what will get most investors worried is how WhatsApp is able to make back that money.

For what I understand Whatsapp charge 0.99 cents on their per pay service,
which current 300million users only they might make 300million dollars, but 19billion?
There is no adds or anything like that in whatsapp from what I understand.
They might develop it further since Mark Zuckerberg fail to purchase SnapChat

What I hear from bloomberg this afternoon is that Only 2% of americans uses Whatsapp, most of them just prefer to use text messages. But in Europe, South East Asia, users are up to about 80++%

China on the other hand has a very low user rate as well due to WeChat , and Korean they have their own Chat App as well.

So based on the 2% of Americans and with FB's publicity on Whatsapp, there is a very high chance it can grow.

bloomberg reported yday that watsapp is having 450 m users. most popular in the states and now penetrating the china market.
also reported that how watsapp is going to make money is yet be seen.