The price paid by Facebook for WhatsApp caused widespread puzzlement and criticism from analysts and investors who wondered how on earth the company could conceivably offer $19bn for a company with 450m users but virtually no paying customers. This article describes the “landgrab economics” mindset that caused Mark Zuckerberg to take this step, and leaves readers to judge based on many pros and cons.
After more than seven quarters of lackluster results IBM’s performance and prospects are under the market’s microscope. Today the company has become a value stock. How can the company overcome its chronic growth crisis and become relevant in the cloud era? In an open letter to CEO Ginni Rometty and the IBM board, I propose five best practices that the company needs to adopt, following three key principles to guide the management team’s thinking.