App co-founder: "We're the most atypical Silicon Valley company you'll come across."
by Cyrus Farivar - Oct 28 2014Several months ago, Facebook acquired messaging startup WhatsApp for a whopping $16 billion, plus an additional $3 billion for its founders and small staff. On Tuesday, Facebook announced that in 2012 and 2013, WhatsApp lost a combined $192.8 million. (WhatsApp famously has no advertising, and its current revenue model is to make money off annual subscription fees.)
Facebook also disclosed for the first time how it arrived at that $16 billion purchasing figure: $15.3 billion of that was simply wrapped up in the nebulous accounting term: “goodwill.”
Full Article