WhatsApp will bring Facebook another billion users. We will be a billion-user product. Whether there is a direct valuation or an indirect valuation, there is value, and Facebook understands that well.
There's a certain degree of speculation that goes into valuations. In so far as the market supports a valuation, everyone who gets a great one deserves it, but they should also be cautious because that speculation is temporary. I saw Yahoo go from $100 billion to $10 billion. It's not a long-term measure.
Going public is 18-month process, while an acquisition is a 6-month process. Going public means going under so much scrutiny, regulatory approval, auditing, magnified 10 times. Having the stomach to do that isn't necessarily in my DNA. My DNA is building a product and a service.
It's not 100 per cent clear to me what's working about Snapchat.
H. C. Bailey