Posted on April 8, 2014 by David Laidlaw

Last quarter, we wrote about Snapchat’s rejection of Facebook’s $3 billion offer. Facebook moved on and bought WhatsApp for $19 billion, because who doesn’t want a company whose CEO has promised that WhatsApp will never advertise and only charge a nominal fee (currently $1 per year)? From our view, this purchase is another example of Facebook trying to buy its way to growth while the market allows for bubble-like valuations of anything related to social media.