How long will facebook take to recover the investment from Whatsapp? - Business & Economy - Investment - TIK Share

How long will facebook take to recover the investment from Whatsapp?


Rahul Rai

2014-02-23

Facebook bought Whatsapp for a great price $19 billion. How long facebook will take to recover the investment?

Will it use other revenue models than the current one of Whatsapp?

CA Pulkit Sharma

2014-02-23

Lets try to answer it by analysing the expected revenue from current model.

Whatsapp charge 1$ for a year subscription. Whatsapp have 450 Million users.

So the revenue for each year is expected to be $450 Million. And if we consider an increase of 30% each year in revenue.

The total revenue for next 10 year will be around $20 billion. It will take 10 years to receover the investment cost (Inflation is not factored).

How long it will take to recover the investment from Whatsapp?

But facebook is very smart, and hopefully they will bring more features and revenue streams for whatsapp.

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Rahul Rai

2014-02-24

Good analysis, inflation is not factored for investment made but revenue is factorised. The $20 billion has to come from 20 billion people. Population may not be that much, however revenue will be charged higher.

The asset may be valued at more than the money paid by facebook after 10 years.

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