On February 19, 2014, Facebook announced an agreement to acquire WhatsApp in a deal valued at approximately $19 billion. Started in 2009, WhatsApp had 450 million monthly active users and a team of just 55 people at the time. It had largely rejected advertising in favor of a small subscription fee. Being a Facebook shareholder, I wrote then that only time would tell whether the acquisition was a smart move.
But here’s what made the price so striking in February 2014: WhatsApp was valued above a long list of major public companies that had been around much longer. The figures below are period market-cap snapshots, not current valuations. Those companies sold tangible goods and services. WhatsApp’s value rested largely on the scale and engagement of its user base.
Congrats to WhatsApp on a historic exit and an inspiring moment for entrepreneurs.
Activision Blizzard – $13.9B
Alcoa – $12.2B
American Airlines – $12.3B
Akamai – $10.9B
AmerisourceBergen – $15.9B
Blackstone Group – $17.8B
Campbell Soup – $13.6B
Chesapeake Energy – $17.2B
Chipotle – $17.1B
Citrix Systems – $10.7B
Coach – $13.5B
Consolidated Edison (ConEd) – $16.2B
Discovery Communications – $19.1B
Dr. Pepper Snapple Group – $10.2B
Expedia – $10.2B
The Gap – $19B
Fidelity – $15.8B
Harley-Davidson – $14.1B
Hertz – $11.5B
Icahn Enterprises – $13.1B
The J.M. Smucker Company – $10B
Kohl’s – $11.1B
Kroger – $19.4B
Loews – $17B
Macy’s – $19.6B
Marriott International – $15.4B
Mattel – $12B
MGM Resorts – $12.7B
Monster Beverage – $12B
Moody’s – $17.08B
News Corp – $10.27B
Nielsen – $17.6B
Nordstrom – $11.4B
Progressive – $14.3B
Ralph Lauren – $14.2B
Red Hat – $11.1B
Royal Caribbean Cruises – $11.4B
Ryanair – $15.5B
Sherwin-Williams – $19.4B
Southwest Airlines – $14.7B
Starwood Hotels & Resorts – $14.9B
Symantec – $14.4B
TD Ameritrade – $18.4B
The Carlyle Group – $11.1B
Tiffany & Co. – $11.4B
Tyson Foods – $13.1B
Under Armour – $11.4B
Whole Foods Market – $19.3B
Workday – $17B
Xerox – $13.2B
And to make the story even sweeter, co-founder Jan Koum had applied unsuccessfully for jobs at Twitter and Facebook in 2009. Five years later, Facebook agreed to buy the company he helped build. Now how’s that for a happy ending?




