Was it worth it? Why Facebook to spend $19 billion to buy WhatsApp

The world's largest social-networking site Facebook on Wednesday (19th) cast a shocking bomb, announced to cost $19 billion acquisition of popular action network newsletter software WhatsApp to gain insight into young, newsletter marketing and emerging-market countries.

A record 13 years the largest Internet company deals. Facebook this deal costs include $4 billion in cash, $12 billion worth of company stock, as well as other employees over the next 4 years 3 billion dollars ' worth of restricted stock (RSU).

After the news, Facebook shares fell 2.9% to $66.09.

According to the Bloomberg survey, which is following the 2001 United States media and entertainment giant Time Warner AOL with network services company to a $124 billion merger, the largest Internet company deals. Facebook says WhatsApp existing global number of users by more than 450 million households, and increasing by 1 million a day.

The MarketWatch noted, today's transaction price equivalent to WhatsApp for valuation of US $42 per user, Facebook investors feel is too high, when shares tumbled more than 5%. According to Facebook a few weeks ago trying to buy another more than 3 billion dollars short messaging service enterprise SnapChat, but was rejected.

SnapChat is the number of users is growing at a rapid rate, daily delivery of the newsletter over 350 million. Facebook top 2 seasons ago in law said the meeting revealed that the number of young users of the site; in a recent earnings announcement, not provide new comments.

Nevertheless, outsiders still think Facebook users as adults, and young users are transferred to the cooler, more popular social networking platforms, investors are worried about Facebook's growth prospects. Many WhatsApp users believed to be from China and India and other emerging market countries. However, company executives at a press conference on Wednesday, when asked whether their user age is lower, but declined to comment.

The other hand, Facebook and this time bought the WhatsApp, market for network industries is also a two dimensional bubble concerns heat up. Emarketer analyst Debra Aho Williamson accepted the Bloomberg interview noted that Facebook seems to take this deal strongly expressed its position that they are willing to expand the provision of application (app) types to meet different user requirements, different segments of the population and different forms of communication.