Facebook paid first 1% of its market value for Instagram and now close to 10% for WhatsApp, taking not dominance but at the least two of the commanding heights of mobile social. That’s the right way to think about value, I think - not ‘OMG $16bn!”, but “is this worth 10% of Facebook?’ The deal values WhatsApp users at $35 each (very close to what Google paid for YouTube, incidentally), but the current market cap of Facebook values its MAUs at $140 or so.
mobile is the next computing platform and it is several times larger than the desktop internet. There are now roughly the same number of smartphones and PCs on earth - those PCs are mostly shared and immobile or locked-down corporate boxes, while the smartphones are mobile and personal
start with a broad and detailed exploration of the customer journey—and how it could be different. don’t ask customers what they need, but observe how they behave and what makes them happy or sad. then assess what people could do. think about what they will notice, and what they will remember. look for the big moves—can you take entire steps out of the process, change the sequence, add new value in unexpected places?
while the two men worked behind closed doors, one source described the situation as “tense.”
“Bill is usually a pretty calm guy, so it was weird to hear some of that language coming out of his mouth,” the source said.