Why Facebook Investors Love the WhatsApp Deal

REPLAY VIDEO
Your next video will start in
Pause

Recommended Videos

  • Info

  • Comments

  • VIDEO TEXT

Feb. 24 (Bloomberg) -- Activate Founder and Managing Director Michael Wolf discusses Facebook's deal to acquire messaging app WhatsApp on Bloomberg Television’s "Bloomberg Surveillance." (Source: Bloomberg)

Barcelona.

She is talking about whatsapp.

How much of a game chance at just game changer is that transaction?

Facebook would pay over 10% of its market capital for a company.

Just the sears -- sheer size of it.

This is a application that 450 million users use.

They are very few of these giant web supernovas tom and these companies a come out of nowhere and hundreds of millions of people are using them up.

It is very smart for them to snap them up.

Facebook finally gets another revenue stream other than advertising.

They charge about a dollar a month -- a dollar a year.

It gives them the ability to charge something for its service.

It creates a precedent.

Here is facebook.

You can see the reaction is perfect.

Facebook is barely blinked.

The market loves this deal.

Facebook has taken out somebody else, a company that could have as much or more reach than they have.

We want to highlight some headlines that came out of that session.

They aim to release voice functions in the second quarter.

It will start on the iphone and android.

How much of that is significant in this purchase?

I think what is most important is the fact that now facebook gets into another area, another part of our lives.

Their ability to take over a piece of what has historically been the wireless carriers domain.

That is voice.

I can go to over-the-top services.

I can go around of the carrier who is charging for the service.

Facebook is going to be massively disruptive.

Your take -- the face of growth is a reminder of how much faster technology moves to

This text has been automatically generated. It may not be 100% accurate.

Advertisement

BTV Channel Finder

Channel_finder_loader

ZIP is required for U.S. locations

Bloomberg Television in   change