Tag Archives: internet
Facebook to buy WhatsApp for $19 billion in deal shocker
Facebook to buy WhatsApp for $19 billion in deal shocker (Reuters) / 20 February 2014 Facebook’s purchase of messaging service WhatsApp for up to $19 billion in cash and stock is one of the largest acquisitions ever in the technology sector. The WhatsApp and Facebook app icons on an iPhone in New York. AP Facebook Inc will buy fast-growing mobile-messaging startup WhatsApp for $19 billion in cash and stock in a landmark deal that places the world’s largest social network closer to the heart of mobile communications and may bring younger users into the fold. The transaction involves $4 billion in cash, $12 billion in stock and $3 billion in restricted stock that vests over several years. The WhatsApp deal is worth more than Facebook raised in its own IPO and underscores the social network’s determination to win the market for messaging. Facebook-WhatsApp deal one of biggest ever in tech Here are some other notable deals involving US tech companies, in order of dollar amount from largest to smallest: HEWLETT-PACKARD BUYS COMPAQ – SEPTEMBER 2001 US technology giant Hewlett-Packard buys Compaq Computer for $25 billion in a bid to compete with IBM. GOOGLE BUYS MOTOROLA MOBILITY – AUGUST 2011 Internet search giant Google buys the handset business of Motorola for $12.5 billion in a bid to challenge Apple in the smartphone market. Less than three years later, Google sold Motorola to China’s Lenovo for $2.91 billion. HEWLETT-PACKARD BUYS AUTONOMY – AUGUST 2011 US technology giant Hewlett-Packard buys British enterprise software company Autonomy for $10.24 billion. US authorities later open an investigation amid HP accusations that Autonomy had engaged in “accounting improprieties.” MICROSOFT BUYS SKYPE – MAY 2011 Microsoft buys Internet voice and video leader Skype for $8.5 billion, the largest acquisition ever by the US software giant. ORACLE BUYS SUN – APRIL 2009 US business software giant Oracle buys struggling Sun Microsystems and its Java programming language for $7.4 billion. MICROSOFT BUYS NOKIA – SEPTEMBER 2013 Microsoft buys the handset business of former market leader Nokia for $7.2 billion in an effort to catch up to rivals Apple and Google in the smartphone market. GOOGLE BUYS YOUTUBE – OCTOBER 2006 Internet search giant Google buys online video platform YouTube in October 2006 from its founders, Steve Chen and Chad Hurley, for $1.65 billion. EBAY BUYS PAYPAL – JUNE 2002 Online auction house eBay buys online payments firm PayPal for $1.5 billion. YAHOO BUYS TUMBLR – MAY 2013 Former Google executive Marissa Mayer makes her biggest purchase since taking over as CEO of Yahoo, buying the popular blogging platform Tumblr for $1.1 billion. FACEBOOK BUYS INSTAGRAM – APRIL 2012 Facebook offers $1 billion for hot smartphone photo-sharing service Instagram. The purchase of Instagram was Facebook’s largest until the WhatsApp deal. Founded by a Ukrainian immigrant who dropped out of college, Jan Koum, and a Stanford alumnus, Brian Acton, WhatsApp is a Silicon Valley startup fairy tale, rocketing to 450 million users in five years and adding another million daily. “No one in the history of the world has ever done something like this,” Facebook Chief Executive Mark Zuckerberg said on a conference call on Wednesday. Zuckerberg, who famously closed a $1 billion deal to buy photo-sharing service Instagram over a weekend in mid-2012, revealed on Wednesday that he proposed the tie-up over dinner with CEO Koum just 10 days earlier, on the night of February 9. WhatsApp was the leader among a wave of smartphone-based messaging apps that are now sweeping across North America, Asia and Europe. Although WhatsApp has adhered strictly to its core functionality of mimicking texting, other apps, such as Line in Japan or Tencent Holdings Ltd’s WeChat, offer games or even e-commerce on top of their popular messaging features. The deal provides Facebook entree to new users, including teens who eschew the mainstream social networks but prefer WhatsApp and rivals, which have exploded in size as private messaging takes off. “People are calling them ‘Facebook Nevers,’” said Jeremy Liew, a partner at Lightspeed and an early investor in Snapchat. How the service will pay for itself is not yet clear. Zuckerberg and Koum on the conference call did not say how the company would make money beyond a $1 annual fee, which is not charged for the first year. “The right strategy is to continue to focus on growth and product,” Zuckerberg said. Zuckerberg and Koum said that WhatsApp will continue to operate independently, and promised to continue its policy of no advertising. “Communication is the one thing that you have to use daily, and it has a strong network effect,” said Jonathan Teo, an early investor in Snapchat, another red-hot messaging company that flirted year ago with a multibillion dollar acquisition offer from Facebook. “Facebook is more about content and has not yet fully figured out communication.” Price tag Even so, many balked at the price tag. Facebook is paying $42 per user with the deal, dwarfing its own $33 per user cost of acquiring Instagram. By comparison, Japanese e-commerce giant Rakuten just bought messaging service Viber for $3 per user, in a $900 million deal. Rick Summer, an analyst with Morningstar, warned that while investors may welcome the addition of such a high-growth asset, it may point to an inherent weakness in the social networking company that has seen growth slow in recent quarters. “This is a tacit admission that Facebook can’t do things that other networks are doing,” he said, pointing to the fact that Facebook had photo-sharing and messaging before it bought Instagram and WhatsApp. “They can’t replicate what other companies are doing so they go out and buy them. That’s not all together encouraging necessarily and I think deals like these won’t be the last one and that is something for investors to consider.” Venture capitalist Sequoia Capital, which invested in WhatsApp in February 2011 and led three rounds of financing altogether, holds a stake worth roughly $3 billion of the $19 billion valuation, according to people familiar with the matter. “Goodness gracious, it’s a good deal for WhatsApp,” said Teo, the early investor in Snapchat. Facebook pledged a break-up fee of $1 billion in cash and $1 billion in stock if the deal falls through. Facebook was advised by Allen & Co, while WhatsApp has enlisted Morgan Stanley for the deal. Shares in Facebook slid 2.5 percent to $66.36 after hours, from a close of $68.06 on the Nasdaq. “No matter how you look at it this is an expensive deal and a very big bet and very big bets either work out or they perform quite poorly,” Summer said. “Given the relative size, the enterprise valuations this is a very significant deal and it may not be the last one.” WhatsApp: a booming smartphone message service WhatsApp was launched five years ago as a shot at doing to text messaging what Skype did to telephone calls. If Facebook’s move to buy the startup in a cash-and-stock deal valued as high as $19 billion is any indication, the California-based WhatsApp may have hit the mark. The firm founded by former Yahoo employees Brian Acton and Jan Koum in 2009 took its name from a play on the phrase “What’s Up,” according to its website. They also devoted themselves to a credo of “No Ads. No Games. No Gimmicks.” A note stating just that and signed by Acton remains taped to Koum’s desk, according to venture capital firm Sequoia, which invested in the startup early and stands to cash in big time on the Facebook take-over. The “contrarian approach” of gathering no information about users for targeting ads was shaped by Ukraine-born Koum’s aversion to tactics of secret police in communist countries, Sequoia partner Jim Goetz said in an online note. “Jan’s childhood made him appreciate communication that was not bugged or taped,” Goetz said. “When he arrived in the US as a 16-year-old immigrant living on food stamps, he had the extra incentive of wanting to stay in touch with his family in Russia and the Ukraine.” Koum remained true to those ideas when, after working at Yahoo with his “mentor” Acton, he turned to building WhatsApp, according to Goetz. The stated mission was to build a better alternative to traditional SMS messaging in a world where smartphones were clearly becoming ubiquitous. The founders jokingly described themselves at the website as “two guys who spent combined 20 years doing geeky stuff at Yahoo! Inc.” WhatsApp is a platform for sending images, video, audio, or text messages for free over the Internet using data connections of smartphones. The application is free, but after using it for a year, there is an annual subscription fee of 99 cents. “We feel that this model will allow us to become the communications service of the 21 st century, and provide you the best way to stay in touch with your friends and family with no ads getting in the way,” the startup said in a blog post discussing pricing. WhatsApp is reported to have grown stunningly fast to more than 450 million users and said to handle 50 billion messages daily. As of the start of this year, WhatsApp had 50 employees, more than 30 of them engineers. While the company has its headquarters in the California city of Mountain View, where Google has its main campus, most of the engineering work is reportedly done in Russia. – AFP For more news from Khaleej Times, follow us on Facebook at facebook.com/khaleejtimes , and on Twitter at @khaleejtimes Continue reading
Rise in Internet use reason for decline in family time
Rise in Internet use reason for decline in family time Staff Reporter / 16 February 2014 Expats suggest parents must try and spend at least the weekends with their kids, teenagers must try and give time to their parents. For Indian national Shreya Venkatesh (14) and her mother Kalpana Venkatesh, the idea of not spending enough time with each other is something of an alien concept. The Venkatesh family has been living in the UAE for the last 10 years. “I have two kids and I am very much involved with them. I always try and spend as much time as I can with them. One of the reasons I decided to become a stay-at-home mom, is so that I can pay attention to the needs of the kids,” said Kalpana. In response to her mother’s comment, Shreya said: “I think children and parents must make it a point to spend at least one entire day a week with each other. I have a lot of my friends whose parents work outside and parents lock their gadgets up. They don’t have any other options, except study at home.” Parents in the UAE are spending much less time together with their kids compared to when they were growing up, according to a survey of more than 1,200 expats conducted by 999 Magazine. Conducted in January, the survey points out that on an average, expat parents in the UAE spend just 50 minutes of quality time together with their children on a normal working day, with a slight improvement on Thursday (75 minutes). Some of the reasons include increased workloads of parents and children, longer commuting time, increased time spent watching TV and being on the Internet. The poll shows that the UAE’s expat families have a little more than 11 hours together in total each week, with weekends the best time for family bonding. Khaleej Times caught up with a few expatriate residents in Dubai, and all of them are of the opinion that parents must try and spend at least the weekends with their kids. They added that teenagers must try and give time to their parents, as well. Student and Pakistani national Maryam Waris (21) said: “With the state that the economy is in, parents have no other choice except work. But weekends can be kept aside for the family. Growing up, I didn’t face much of a problem with my folks not giving me enough time, but kids must also take the initiative to spend time with their parents, especially teenagers.” Another Pakistani national Mubeena Waris (23) said: “I think that off late, because parents don’t spend enough time with children, a lot of children have low emotional maturity. Parents must take care of their kids and must be careful not to drag them into their personal problems like fights between parents.” Twenty-four-year old insurance consultant Rebecca Pinto said: “I used to spend time with my parents every weekend and even though my dad used to be away for work while I was growing up, I never got the feeling of being left out of anything. I used to spend a lot of time with my extended family, like my grandparents as well. I think off late there is a trend where kids are a little emotionally stunted because they don’t spend sufficient time with parents.” Janeiro D’souza (23) said: “Weekends were strictly family time. We would see to that we have lunch or dinner with the family. It is the parent’s duty to spend time with the child, and if they can’t do it, then it is very unfortunate. If the parent does not do so, there is a high tendency for the child to drift away.” The survey further stated that even when families get together, more than six in 10 parents (62 per cent) said the quality of time spent is not great as most of it is spent either in front of the TV, doing homework, reading, playing computer games or some other tasks that don’t qualify as quality family time. Experts are warning against the dangers of not spending enough quality time with children, maintaining that family time can be ‘therapeutic’ and acts as a deterrent to potential serious problems. The decline in family time in the past few years coincides with a rise in Internet use and the popularity of social networks. dhanusha@khaleejtimes.com For more news from Khaleej Times, follow us on Facebook at facebook.com/khaleejtimes , and on Twitter at @khaleejtimes Continue reading
Expat parents not spending quality time with children
Expat parents not spending quality time with children Staff Reporter / 10 February 2014 TV and Internet primary culprits followed by daily chores, finds out 999 survey. Parents are spending much less time with their children compared to when they were growing up, according to a survey of more than 1,200 expatriates conducted by 999 magazine. The survey, conducted in January, points out that on average, expatriate parents in the UAE spend just 50 minutes of quality time with their children on a normal working day with a slight improvement on Thursdays (75 minutes). A variety of pressures of modern life — including increased workloads of parents and children, longer commuting time, and a near invasion of the lives by TV and the Internet — is eating into family time, maintain parents. The new poll shows that the UAE’s expatriate families have a little more than 11 hours together in total each week, with weekends the best time for family bonding. Even when families do get together, more than 62 per cent say the quality of time spent is not great as most of it is spent either in front of the TV, doing homework, reading, playing computer games or some other tasks that don’t qualify as quality family time. Experts are warning against the dangers of not spending enough quality time with children, maintaining that family time can be therapeutic and acts as a deterrent to potential serious problems. There are a number of issues that can come up when children receive little parental involvement and guidance, insists Dr Mehvash Ali, a licensed clinical psychologist in the US, who is currently working as Director for the Academic Centre at the American University of Sharjah. These include attention issues, acting out behaviour or conduct disorders, low self-esteem, low academic achievement, lack of religious values, and social problems, she maintains. “In later life, such children are at higher risk of developing mental health issues including mood disorders, anxiety, eating disorders, and substance abuse. They are also more at risk of dropping out of school/college or having lower than expected academic achievement,” explains Dr Ali. According to the survey results, longer working hours in general and longer commuting time are the primary culprits for UAE families spending less time together as a majority of respondents cited these as the number one reason. Television and the Internet are among major reasons why expatriate families don’t spend quality time together, cited by 14 and 11 per cent of respondents, respectively. Household chores were the top reason for eight per cent of respondents while five per cent of the parents said that their children were of an age where they did not want to spend time with their parents. Lt-Colonel Awadh Saleh Al Kindi, Editor-in-Chief of 999, says, “Time spent with family results in fewer bouts of depression as members feel secure in being part of a supportive family. In addition, parental involvement helps parents themselves to de-stress because this provides them with an opportunity to be away from work-related activities.” (With inputs from Wam) news@khaleejtimes.com For more news from Khaleej Times, follow us on Facebook at facebook.com/khaleejtimes , and on Twitter at @khaleejtimes Continue reading
