Social Media Valuations Per UserFacebook Buys WhatsApp, Proves Something About Tech Bubbles And Markets Or Maybe Not

So Facebook bought WhatsApp yesterday for $19 billion: $4bn in cash, $12bn in shares and $3bn in restricted stock bonuses to employees and founders.  “Mr. Zuckerberg is clearly willing to spend big to acquire hot messaging technologies, which typically attract younger people than Facebook does.”  People are using it to talk about overvaluations in the tech sector and possibly frothy bubble conditions in the market in general; however, “a back-of-the-envelope calculation shows that at least on one key metric — the valuation per user — is not far off the mark set by previous deals in the industry.”  And WhatsApp helps Facebook with global market share: “you might wonder how WhatsApp will ever earn back the money it cost to buy, but this acquisition wasn’t about increasing Facebook’s total revenue.  It was about surviving the global shift to mobile.”  Here’s a great overview of what exactly Facebook is buying.  Also, Facebook is the real life LexCorp.

FOMC

Here’s the Washington Post’s 5 takeaways from the minutes of the FOMC meeting last month: 1) The Taper is working! 2) But we might need to Taper the Taper at some point, 3) Low participation in the workforce is either “all hope is lost” dropouts or the result of an aging population combined with longer years spent in school (St. Louis Fed President James Bullard thinks the declining participation rate is natural and, therefore, the recent decline in unemployment is real.  He also thinks he and Jimmy Fallon have something in common), 4) Forward guidance is lacking in actual “guidance”, (note: Stanley Fischer, arch-nemesis to “forward guidance” should be confirmed in time for the next meeting) and 5) The US economy is either losing steam or we can blame global warming, either way though: not good.  Also, apparently “a few” members “indicated that ‘before the middle of the year’ would be an appropriate timeline to consider a rate hike” in the federal funds rate.

Global: The Auditing Roadblock: It’s Not Just China

“The Public Company Accounting Oversight Board is out with a list of 58 international audit firms that it has been unable to inspect for at least four years…There are eight Chinese firms and another eight based in Hong Kong…But for sheer numbers, Europe is the biggest scope of the problem.  Forty of the audit firms are based in the European Union…Italy, France and Sweden lead the European list with five uninspected audit firms each, followed by Belgium with four.”

EM: What Executives Really Need To Know About The “Emerging Markets Crisis”

EM: Behind A Pattern Of Global Unrest, A Middle Class In Revolt

Onshoring: Italian Gunmaker Brings Factory Jobs To U.S.

Ok, so Chiappa is doubling its U.S. workforce from 14 to 30 people but still…Onshoring.

Oil: Keystone Pipeline Faces New Obstacle In Nebraska

USA: WalMart Is Half-Heartedly Considering Not Fighting The Minimum Wage Increase

WA: Legal Pot To Generate $190 Million For Washington

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