Don’t Be Such a Young Punk
Perhaps I am just getting old, but I see Zuckerberg as a lucky young punk. There really wasn’t anything earth-shattering about Facebook rising to the top of the social networking food chain.
Now that he is on the top, this acquisition is designed to keep him there. Instead, it looks like the rich kid going out and buying a hot new sports car – without negotiating, by the way. The transaction is a punk move at a time when being a young punk is not really necessary. That may have served a purpose at the start, but Facebook shareholders will likely have buyer’s remorse when it comes to looking back on this deal.
WhatsApp might be on its way to having a billion users, but can it make a profit? More importantly can it make a profit to justify the price paid? I just don’t see it happening. It’s Zuckerberg’s prerogative to do this deal, but perhaps some restraint might have been the better course.