Case study preparation: the whatsApp acquisition from Facebook

• Author(s): Cosentino, Francesco
• Date: 2015
• Persistent ID: http://hdl.handle.net/10362/15370
• Origin: Repositório Institucional da UNL
• Subject(s): Synergy value; Corporate valuation; M&A deal; Business and financial model
• Document Type: Master thesis
• Language: English
• Advisor(s): Cunha, Igor
• Contributor(s): RUN

Description

The purpose of this work project is to analyze the acquisition of WhatsApp from Facebook occurred on 19th February 2014. The main research has the aim to understand if the price tag of $19 billion paid by Mark Zuckerberg was fair. Along the reaction of Facebook’s EPS on the keydays after the purchase, a balanced assessment of the acquisition was obtained and discussed. Results suggest that the price tag could be reasonable. However, taking into account the industry in which the two companies operate, where competition is quite intense, Facebook should assess this deal in a longerterm perspective.

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