Facebook took the world by storm and now with its success, Mark Zuckerberg can take his time to plan his empire well.
The IPO of Facebook stood strong, albeit a little hiccup in May 2012. From a price of $38 per share in August last year, it has made waves with the common shares currently at a record high of $76.74 per share. That is slightly over double, in just one year. Kim Forrest, an equity research analyst said that it is completely crazy that a two year company with virtual assets can have the same cap as a hundred year company with real assets. And Facebook’s share value is still expected to double next year.
What made market analysts mind blown is the speed in which Facebook got its maximum trading cap that they currently have. Apple and Google took 30 years and 5 years respectively to get to what Facebook is having now.
Zuckerberg said in a conference call with Bloomberg that he doesn’t want to monetize the two messaging apps under his empire, Whatsapp and Facebook Messenger, yet. He went on to add that the groundwork required to implement it is immense and requires proper planning.
This is despite the success of other corporations who have monetized their messaging service. WeChat, the brainchild of TenCent is estimated to have a total value of $64 billion USD, with its offering of secondary services and mobile wallet services. Following closely behind is Line, with their value estimated at $9.8 billion USD based on the IPO that they are offering in the Tokyo Stock Exchange.
With all these similar companies in mind, it seems that Zuckerberg wants to take the monetization plan at his own pace. After all he has hired David Marcus, who was the former president of Ebay’s subsidiary, Paypal.
Would you still use Whatsapp or Facebook if you had to pay for premium services?