Facebook Acquires WhatsApp for $16 Billion
. . . And now the most shocking news comes from the tech world currently is about the acquisition Facebook recently did and it’s about an app having 450 million monthly active users and growing by 1 million new registered account a day! It might be a little disappointment for those who chose to stay away from Facebook messenger and choose an independent platform but oh man, what a deal!
In a press release by Facebook, CEO Mark Zuckerberg said that “WhatsApp is on a path to connect 1 billion people. The services that reach that milestone are all incredibly valuable.” WhatsApp Co-founder and CEO Jan Koum will join Facebook’s board of directors but his team will continue to work from the Mountain View, California.
In a blog post, WhatsApp CEO Jan Koum reassured that the acquisition won’t result in any changes for users. “Doing this will give WhatsApp the flexibility to grow and expand, while giving me, Brian, and the rest of our team more time to focus on building a communications service that’s as fast, affordable and personal as possible,” I doubt, got to wait and watch.
The deal includes $4 billion in cash, $12 billion in Facebook shares and an additional $3 billion in vesting restricted stock units for the WhatsApp team over the next four years.
- Shares in Facebook slid 5 percent to $64.70 after hours, from a close of $68.06 on the Nasdaq.
- Facebook said on Wednesday it will pay $4 billion in cash and about $12 billion in stock in its single largest acquisition, dwarfing the $1 billion it paid for photo-sharing app Instagram.
- The price paid for Instagram, which with just 30 million users was already considered overvalued by many observers at the time.
- Facebook promised to keep the WhatsApp brand and service, and pledged a $1 billion cash break-up fee if the deal falls through.
- Facebook was advised by Allen & Co, while WhatsApp has enlisted Morgan Stanley for the deal.
Stay tuned to SkotGat for more news on this story soon!
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