Google says Facebook overpaid for WhatsApp

I don’t disagree, but Google seems a little bitter.

  • Larry Davis

    This from the company that lost its ass on Motorola.

    • EVula

      Exactly. Forgive me if I don’t exactly believe that Google can properly identify when someone has grossly overpaid for a company…

    • matthewmaurice

      Yep. Facebook paid $42 per active user of WhatApp. Back in, ostensibly pre-Social Media bubble, 2006 Google paid $48 per active user of YouTube. Granted, one could argue that not all “active users” are created equal, but at some point you have to resort to objective criteria. Either way, Google really shouldn’t be talking about overspending on anything.

      • YouTube is one of the best purchases in history. $48/user is a steal, in hindsight, but I get your point.

        • matthewmaurice

          That’s far from assured. Google doesn’t make the analysis of YouTube revenue easy, and even if it did, in comparison to acquisitions like PA Semi for $278 million, NeXT for $400 million, or even Google’s acquisition of Applied Semantics for $102 millions YouTube looks good, but not great. Of course, in comparison to things like HP-Compaq and AOL-Time Warner YouTube looks downright brilliant. Perspective is everything in life.

          • I disagree. YouTube is the top video site worldwide and one of the top sites, not just video, as well.

            It is hard to compare the acquisition of one of the most success sites in history to the others you mentioned.

            But yeah…perception.

          • matthewmaurice

            “It is hard to compare the acquisition of one of the most success sites in history to the others you mentioned.”

            I agree. NeXT fundamentally changed the nature of Apple and was the source of the greatest turnaround in tech industry history. PA Semi took Apple from a purchaser of 3rd-party ARM chips to producer of ground-breaking ARM designs in less than 5 years providing the, ah…core [sorry, I just had to] technology of, what’s likely, the most lucrative consumer electronics product of all-time. Applied Semantics were the big brains behind AdSense, the biggest source Google’s revenue for years and purchased for just over 10% of YouTube’s price.

            YouTube hasn’t had anything close to that kind of effect. It was a good acquisition, but it’s hard to place it in even the top 5 of “best purchases in history”, even when limited to technology.

  • Didn’t they bid like 12B+ for them?