![facebook share price facebook share price](https://ei.marketwatch.com/Multimedia/2018/02/01/Photos/NS/MW-GC885_facebo_20180201122502_NS.jpg)
“In essence, it’s a paranoid defence play in the spirit of Intel that pursued the same strategy back in the old days to fend off new competitors. Peter Garnry, head of equity strategy at Saxo Bank, said: “Facebook’s technology deals are often not hinged on cash flows but more on controlling a competitor that could ultimately pose a great threat to Facebook’s dominance and market value. WhatsApp was reportedly courted by Google last year, and Facebook made the purchase after failing to secure a $3bn deal with the popular messaging service Snapchat last year. The purchase comes as tech giants fight to secure a lead in mobile technology – the fastest-growing segment for customers and advertisers. WhatsApp is receiving $4bn in cash, $12bn in Facebook shares and $3bn in restricted stock that its management will receive over the next four years.
![facebook share price facebook share price](https://9to5carwallpapers.com/wp-content/uploads/2013/07/lamborghini-Gallardo-Wallpaper-HD-1920x1080_2013.jpg)
But by the end of the trading day, the shares had bounced back, erasing the earlier losses.Īnalysts said investors were rattled by the price – a record for an acquisition by Facebook – and the fact that the purchase was being made largely in shares, therefore diluting other shareholders.
![facebook share price facebook share price](https://static.seekingalpha.com/uploads/2020/9/7/49121886-15994802823180172.png)
The news reduced Facebook’s market cap by billions. Facebook’s record-breaking $19bn purchase of the messaging service WhatsApp got a mixed reaction from investors on Thursday, as a sharp sell-off was followed by a rally in the social media company’s stock price.įacebook’s shares fell as much as 3.4% in early trading after the announcement of its purchase of the fast-growing and popular but thus far unprofitable WhatsApp.