The huge price tag for Facebook's acquisition of messaging service WhatsApp is hard to justify, but there is clearly value in the app's 450 million users, Blackstone's John Studzinski told CNBC on Friday.
The senior managing director and global head of Blackstone Advisory Partners pointed out that "beauty is in the eye of the beholder" and Facebook $16 billion acquisition of WhatsApp deal was all down to chief executive Mark Zuckerberg's vision.
"That expression, beauty is in the eye of the beholder. You probably have to go back to some aspect of that. I can't justify it but then again I don't have Mark Zuckerberg's vision, I don't have his check book," said Studzinski.
"There is clearly value in those 450 million people, it's a question of what value you put on it and what you are going to do with it," he said.
Facebook bought messaging start-up WhatsApp last month for a staggering $16 billion, plus another $3 billion in restricted stock options. Many investors and analysts were unimpressed with the deal and Facebook's share price slipped almost 4 percent at the time.