While many companies can grow a core business for an extended period of time, all are challenged by the need to respond to changing external circumstances, develop new businesses, and enter adjacent markets. One of the ways to do this is through M&A. Here we study one of the most contentious recent examples-Facebook's $22b acquisition of WhatsApp-to understand if the messaging app company has a sufficiently strong and sustainable market position to justify the price when its current revenues are less than $10 million. 1) Do you agree with Facebook's $22b purchase of WhatsApp? Why? Why not? 2) What analyses support your position? What are the underlying assumptions you are making? 3) Would you have accepted the $22b offer?