The sound of jaws collectively crashing onto the floors of trading rooms was heard across Wall Street yesterday - and probably far beyond - after Facebook (FB) said it has agreed to acquire WhatsApp for $19B in cash and shares. Although the mobile-messaging application has 450M monthly active users, the valuation is higher than that of 235 S&P 500 components. Still, as with Instagram, one theory seems to be that Facebook has paid heavily to head off what it sees as a potential major threat. Shares were -2.4% premarket.
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