The acquisition of WhatsApp by Facebook has set the deal market on fire. Analysts are finding it difficult to justify valuations of the 55 employee company. Facebook has justified it by saying that they are looking at growth rather than making money. That being the case, a number of Indian companies would be eligible for a similar acquisition by Facebook.
We list down a shopping list of 5 things that Zuckerberg can do with his $19 billion in India. Read it at your own risk.
1) He can buy India's largest bank SBI with its 13,000 branch network, including 10 branches in Amethi which Rahul Gandhi inaugurated yesterday.
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2) If Zuckerberg is interested in real estate, the entire real estate sector (listed on the BSE) is available for half the amount he paid for WhatsApp. This includes the largest real estate player DLF with its prime properties surrounding Delhi and Aman Hotel which the promoters have got attached to.
3) Zuckerberg can buy the entire free float (non-promoter shareholding) of Reliance Industries and form a partnership company with Mukesh Ambani. The high gas prices from April 2014 can give all the growth he wants.
4) Zuckerberg should know that India is a cricket crazy country. At the price at which he bought WhatsApp, he could have bought the entire cricket league (IPL is valued at $4 billion) with stadiums thrown in for good measure.
5) Indians are passionate about Bollywood, when they are not tweeting or updating their facebook status. The entire Indian movies market (Bollywood market size is Rs 20,000 crore), which incidentally makes more movies than Hollywood; can easily be purchased to make him a bollywood baron.
But looks like he is happy being a social networking baron. So its back to WhatsApp and hope he keeps it seperate from facebook's own messaging product.
But looks like he is happy being a social networking baron. So its back to WhatsApp and hope he keeps it seperate from facebook's own messaging product.