Larry Ellison: “When WhatsApp sold for $19B, a lot of us were shocked… until we thought about it”
In 2014, Mark Zuckerberg bought WhatsApp and their 450 million MAUs for $19 billion.
“A lot of us [in Silicon Valley] were shocked — until we thought about it and understood the value of having access to that many consumers,” Oracle founder Larry Ellison says in this interview that took place a few months after the acquisition closed.
Ellison points out that you have to take into consideration how much traditional businesses (e.g. cable TV companies) pay to acquire customers:
“This is not the place to debate how much you can get through WhatsApp — $1 per year per customer is not going to do it — but I believe there will be opportunity to sell these same customers other things as they join your ecosystem.”
He continues:
“There was quite a battle between Facebook and Google over that property. It wasn’t that one guy did something really silly with a lot of money. Mark Zuckerberg won an auction over Google and paid a high price but got a very valuable asset in the 21st century.”
As of 2025, WhatsApp has approximately 3.1 billion MAUs globally.
@nntaleb So... if researchers wanted to publish only reliable findings, they could. But we can't tell if they post-selected their studies? https://t.co/R0tgLpSKdz
@yishan Thank you so much for bringing so much clarity and educating the rest of us. These kinds of knowledge based perspectives are rare these days. So thank you 🙏
@kareem_carr That's a great illustration, clearly applies to confidence interval in the frequentist context but do you think that's also the case for bayesian estimates ? I think not right ? 🤔
@CuffsTheLegend Also Lakers have to be more judicious when going for offensive rebounds, no need to crash if your chances are slim. Run back on defense !!!
@Carnage4Life A caveat I would add here is that maybe retention won't be as impacted because we are in a tough macro environment where all major tech companies face the same challenge. People who quit need to find a new role but most big tech is downsizing. And not better for startup either.