If we don't do it, our competitors will! Defensive Dealmaking or Panicky Preemption?
aswathdamodaran.substack.com
My last post on Facebook’s acquisition of Whatsapp brought a whole host of responses, some of which took issue with my argument that it is easier to explain the deal using pricing metrics, especially ones that are used in the social media sector (# users) than with valuation models or logic. One of the arguments made by some of the commenters was that I was missing the real reason for the deal, which was that it was a defensive maneuver by Facebook, designed to both protect its profitability and to
If we don't do it, our competitors will! Defensive Dealmaking or Panicky Preemption?
If we don't do it, our competitors will…
If we don't do it, our competitors will! Defensive Dealmaking or Panicky Preemption?
My last post on Facebook’s acquisition of Whatsapp brought a whole host of responses, some of which took issue with my argument that it is easier to explain the deal using pricing metrics, especially ones that are used in the social media sector (# users) than with valuation models or logic. One of the arguments made by some of the commenters was that I was missing the real reason for the deal, which was that it was a defensive maneuver by Facebook, designed to both protect its profitability and to