http://www.latimes.com/business/technolo...
They will just issue more shares and dilute the price. Facebook does not give a rat's hind end about individual investors.
This will end up being a great purchase, there will 1B users of whatsapp within a year or two.
Issue more shares. Yes it would be dilutive but then you are buying, hopefully, potentia income earning assets.
I read that Facebook will pay $19B to acquire WhatApp. Of the $19B, only $4B will be paid in cash and the rest in stocks. My questions is how they will pay in stocks. All stocks are owned by existing investors. Will they all dilute their ownership to pay for this deal?
