Facebook deal makes Whatsapp more valuable than SBI, L&T and HCL

Social media giant clinched deal at $19 billion

Facebook’s decision to buy messaging service WhatsApp for $19 billion (Rs.1.18 lakh crore), makes the ‘early stage’ tech company from Silicon Valley more valuable than 99% of India’s listed companies. 

 

The BSE, India’s largest exchange in terms of number of listed companies, has 5312 on its board, according to its website. Only 14 of these are more valuable than  WhatsApp. In other words, more than 99.7 of them fall short of the company if one looks at their market capitalisation. 

 

If WhatsApp had been listed in India, it would have been the 15th largest company by market capitalisation. It’s valuation of Rs.1.18 lakh crore puts it ahead of such marquee names as the State Bank of India, Larsen & Toubro and HCL Technologies; as well as others including Indian Oil Corporation, NTPC and Maruti Suzuki India. 

In fact,it is more than twice the size of Maruti Suzuki as well as peers such as Mahindra & Mahindra and Bajaj Auto; all of which have a market capitalisation of between Rs.50,000 crore to Rs.60,000 crore, according to data from the website of brokerage house Motilal Oswal Financial Services.

 

The decision to buy Whatsapp may have come from it being increasingly seen as a competitor to Facebook. 

 

In addition to sending messages to other users on a one-on-one basis, the application allows users to create groups to send mass messages, as well as share videos, images and audio content.