Facebook made a bold, maybe risky move to buy the popular messaging service WhatsApp. The $19 billion acquisition is Facebooks largest and it eclipses any other by Apple, Google or Microsoft.
Functionally, WhatsApp doesnt bring anything new to the social network. Facebook has already its own free messaging client Facebook Messenger. WhatsApp does bring 450 million users split between a free service and a $1 per year paid subscription.
It doesnt take a lot of math to raise eyebrows and investors reacted nervously pushing the Facebooks share prices down.
Maybe Facebook snapped up WhatsApp to keep it out of the hands of its competitors.
Whether it is a good move or not won't unfold until later, but there is a lot of chatter that we are seeing a dot-com bubble 2.0.