Friday, 21 February 2014

WhatsApp Gives BlackBerry a Bounce

WhatsApp Gives BlackBerry a Bounce
Today in international tech news: Investors seem to think that if WhatsApp is worth $19 billion, then BlackBerry Messenger must be worth something, too. Also: Europe looks beyond the solar system; Apple sees an uptick in China; Russia's Yandex searches for more smartphone biz; and Kim Dotcom plans an appeal. 
Facebook's US$19 billion purchase of mobile-messaging service WhatsApp appears to have buoyed the value of BlackBerry Messenger -- and by extension, BlackBerry. 
BlackBerry shares went up nearly 10 percent in after-hours trading because, in the words of Reuters, Facebook's purchase "put a rough valuation metric around the smartphone maker's own BlackBerry Messaging service," also known as "BBM."
WhatsApp came to the party after BBM but flew past its predecessor, which had long refused to open itself up on other platforms. WhatsApp has an estimated user base of 450 million -- BBM is at about 80 million -- and is compatible with iOS and Android, as well as devices powered by Windows and BlackBerry.
Before the announcement of the WhatsApp deal, financial services outfit Raymond James on Tuesday valued BBM at $240 million, or $3 per user. WhatsApp, however, sold at an amount worth roughly $42 per user, thus making BBM more attractive. Ergo, BBM looks better now than it did Tuesday.
 

source:Reuters

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