Facebook buys losses
Facebook, which has acquired a mobile messenger WhatsApp for $ 22 billion, the first time publicly disclosed financial results of the service which expectedly proved unprofitable. This is evidenced by the documents on the website of the Commission on the Securities and Exchange Commission (SEC).
For the first six months of 2014 net loss of WhatsApp was increased almost 4 times – to 232.5 million compared with 58.8 million in the same period a year earlier. Revenue Service for the first half increased by 5.5 times to 15.3 million dollars.
According to the results of the previous (2013) year net loss of WhatsApp was estimated at 138.15 million dollars, revenues – 10.2 million dollars.
Transaction was the largest acquisition for Facebook and one of the largest sums paid for a particular mobile service. The company also said it plans to increase spending to support new areas of business, including WhatsApp, at 55-75 per cent in 2015. This led to a sharp drop in its stock by 11 percent.
Filed under: Marketing News
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