An interesting analysis of impact of Whatsapp acquisition on Facebook financials
The author has analyzed the half-yearly financial results reported by Facebook post acquisition of Whatsapp. He provides some amusing insights of the impacts Whatsapp acquisition had on Facebook. He provides analysis of per user revenue assumptions in the analysis and an accounting concept “Goodwill”.
In words of the author:
So Facebook did an acquisition
- worth around 11 percent of its market value,
- that increased its revenue by 0.3 percent,
- that decreased its net income by 47 percent,
- and that increased its book value by 67 percent.
China loosens it One Child policy but people are not interested
Finally, China seems to be acknowledging that it has gone too far with its One Child policy, which has become a social concern with decreasing social support for people in old age. Imagine the situation of a single child whose parents are also single child. He/she is responsible for caring six people (including two set of grandparents).
China has allowed the couples where either the husband or wife is an only child. However, the couples would have to seek formal permission before having the baby and the permission can be denied as well! It was interesting to read that people are no longer interested as costs of raising a child have gone up significantly and it is becoming unaffordable. Out of 11 million couples eligible under the scheme, only 0.70 million applied. Ironically, only 0.62 million got the approval.
Russia agrees to supply gas to Ukraine
Politics apart, business has to continue.