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Wall Street Doesn’t Know What to Make of Facebook’s WhatsApp Deal

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Congratulations Facebook, you’ve confused Wall Street yet again.

Facebook announced late Wednesday that it plans to acquire WhatsApp for $16 billion in cash and stock, plus another $3 billion in restricted stock units for employee retention, which is by far the company’s largest acquisition and a deal that represents nearly one-tenth of Facebook’s market value.

Wall Street initially reacted by sending Facebook’s stock down by as much as 5% in after hours trading. By the time the market opened on Thursday, the stock was essentially flat, down less than 0.5%. It was almost as though the previous 17 hours didn’t happen. Read more…

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