Reference no: EM132287734

Case Study Facebook's ( FB) $19 billion acquisition of Whatsapp ( WA) in early 2014. : please research and distill your thoughts and specific answers re the key issues below- especially issue #4 and 5 for this case

Given the capstone ie integrating and learning by applying objectives of this program, this case is a useful opportunity to integrate and apply learnings from various aspects of your learning journey thus far. A key objective of this FB buys WA case is to help you join the dots between and apply three (widely used but often misunderstood !) key concepts : "intrinsic value creation for shareholders" + "strategy" + "business model" that you should have already covered substantially in other modules and/or come across in popularly used jargon in business media and other business contexts.

Please note : in addition to the two case links below, I strongly encourage you to conduct your own additional online research and most importantly your own critical reasoning and therefore arrive at your key answers to below issues especially #4 and #5.

Key Case Issues:

1) What is Whatsapp's (WA) business model , what is it's strategy ? 2) What is Facebook's (FB) business model , what is it's strategy ? 3) a) How does FB's business model differ from WA's ?
b) How does acquiring WA fit into FB's strategy ?
c) How does acquiring WA impact FB's business model?
4) Do you think FB's acquisition of WA for $19B was financially justified at the time of doing the deal ( ie try to focus on addressing this question based on what could be anticipated / predicted circa late 2013- early 2014 ie not with the benefit of hindsight as at 2017) ie is the deal (on balance of probability) likely

Before our first session on the first day of the program week: Please submit both soft and hard copy a one pager ( single spaced, 12 pt Times Roman font) answering the key case questions below , simple bullet points are fine. ( Feel free to append any additional key exhibits of specific relevant trends/facts; your analysis/ calculations that specifically support your conclusions).

In other words is it Business Value Creating / Value Preserving or Value Destroying ?

Ps: Note - a mentioned above, you will do the Bus. Plan module in Groups of 4-6. However regarding preparation for this case, please feel free to do so either individually , with your Group or with any colleagues/ friends of your choice ie whatever you feel is more time efficient and productive to help you arrive at clear, considered and conclusive answers to the above case issues especially #4 and 5

5) FB outbid Google for this deal, is that a) systematically predictable ...or b) was it a mere random, once off circumstance... or c) perhaps is it an indication of the "winners curse " for FB (ie that they over-paid) ?

Attachment:- Case Study Facebook.rar