Facebook Co-Founder and CEO Mark Zuckerberg said during his keynote address at the 2014 GSMA Mobile World Congress in Barcelona, Spain, Feb. 24: “Look, when you’ve just bought a company for $16 billion (WhatsApp, not counting the restricted stock units that hiked the total to $19 billion), chances are you are probably done with your acquisitions for a while.” A while was barely more than one month, and Zuckerberg explained the motivation behind Facebook’s $2 billion deal to acquire immersive virtual reality technology company Oculus VR in a call with analysts Tuesday.
Zuckerberg said during the call, as reported by CNET:
I definitely don’t think you should expect us to make multibillion dollar acquisitions within a couple of months frequently. These are two kind of rare instances. Certainly the rate will not continue.
The theory for WhatsApp — not many services in the world can reach 1 billion people.
One day we thought (Instagram, which Facebook acquired in September 2012 for what was initially announced as $1 billion but was actually valued at $715 million due to Facebook’s then-slumping stock price) could reach 100 million people.
There are not many things that are candidates to be the next major computing platform.
Readers: What company or type of company will represent the next “rare instance?”