Google attempted to purchase WhatsApp before Facebook swooped in with its $19 billion offer. Now, an executive at the search giant is speaking out against the massive buyout. Speaking at the Morgan Stanley technology conference in San Francisco on Wednesday, Google’s chief business officer Nikesh Arora was asked about the Facebook deal and replied, “$500 million per employee? Is that a good use of our money?”
The Wall Street Journal notes that the deal for the 55-person startup comes in at roughly $345 million per employee. Mark Zuckerberg’s decision placed WhatsApp’s founders on the Forbes billionaires list for 2014.
Google attempted to buy WhatsApp several years ago and recently approached the company with another offer that was far less than that offered by Facebook.
So was the WhatsApp deal overpriced? Many analysts have scratched their head at the deal, just as they did when Zuckerberg paid $1 billion for Instagram, a deal that has proven well worth the money.
Zuckerberg is likely looking at the long-term effects of WhatsApp on the internet, however, his decision is veiled in uncertainty, at least for outside observers.
Do you think Facebook”s $19 billion acquisition of WhatsApp was a smart move or a huge blunder?