GO
Loading...

Enter multiple symbols separated by commas

Only the paranoid survive in tech: Former Intel CEO

Facebook's purchase of texting service WhatsApp for up to $19 billion is a "good deal" for the social network, Intel's former chief Craig Barrett told CNBC Tuesday.

He applauded Facebook CEO Mark Zuckerberg for following what former Intel CEO Andy Grove used to preach in Silicon Valley: "'Only the paranoid survive.'"

David Paul Morris | Bloomberg via Getty Images

"[Zuckerberg] was looking at the future saying, 'Hey, Facebook is great but we got to do other stuff to stay ahead of the game. I'm losing some of my younger followers. What can I do now.' And he made a big bet," Barrett told CNBC's "Squawk Box."

The Facebook-WhatsApp deal is mostly stock "so they're not wasting a lot of cash on it." Barrett said. "They really needed a communications play."

He noted that WhatsApp's announcement Monday that it plans to get into the "voice business to compete with Skype and Microsoft and other communication companies."

"In social media, the whole issue is the number of subscribers, the number of customers you have," he said. With more than 465 million monthly active users on WhatsApp, "you can't sneeze at that."

By CNBC's Matthew J. Belvedere. Follow him on Twitter @Matt_SquawkCNBC .

Morning Squawk:
CNBC's before the bell news roundup

Sign up to get Morning Squawk each weekday

Please enter a valid email address
To learn more about how we use your information, please read our Privacy Policy.

Contact Technology

  • CNBC NEWSLETTERS

    Get the best of CNBC in your inbox

    Please choose a subscription

    Please enter a valid email address
    To learn more about how we use your information,
    please read our Privacy Policy.

Re/code

  • Co-CEO, Revere Digital; Co-Executive Editor, Re/code; and Co-Executive Producer, The Code Conference. Re/code is part of the CNBC network.

  • Co-CEO, Revere Digital; Co-Executive Editor, Re/code; and Co-Executive Producer, The Code Conference. Re/code is part of the CNBC network.

Re/code

  • Co-CEO, Revere Digital; Co-Executive Editor, Re/code; and Co-Executive Producer, The Code Conference. Re/code is part of the CNBC network.

  • Co-CEO, Revere Digital; Co-Executive Editor, Re/code; and Co-Executive Producer, The Code Conference. Re/code is part of the CNBC network.