Facebook Is Buying Popular WhatsApp For $16 Billion

It’s official. Facebook has acquired WhatsApp after reaching a deal. The popular messaging app has been acquired by the social giant for $16 billion. That comes off in $12 billion Facebook shares and the rest $4 billion in cash.

The social network has also announced that WhatsApp messaging service will continue to operate as a separate identity even after acquisition, but did claim that this takeover deal with the company, that serves around 500 million users around the globe, improves the ability of Facebook to bring utility and connectivity to the entire universe.

From the official press release:
“Facebook today announced that it has reached a definitive agreement to acquire WhatsApp, a rapidly growing cross-platform mobile messaging company, for a total of approximately $16 billion, including $4 billion in cash and approximately $12 billion worth of Facebook shares. The agreement also provides for an additional $3 billion in restricted stock units to be granted to WhatsApp’s founders and employees that will vest over four years subsequent to closing.
The acquisition supports Facebook and WhatsApp’s shared mission to bring more connectivity and utility to the world by delivering core internet services efficiently and affordably. The combination will help accelerate growth and user engagement across both companies.

“WhatsApp is on a path to connect 1 billion people. The services that reach that milestone are all incredibly valuable,” said Mark Zuckerberg, Facebook founder and CEO. “I’ve known Jan for a long time and I’m excited to partner with him and his team to make the world more open and connected.”
According to the growth stats provided by the company, WhatsApp serves more than 450 million users a month, and 70% of those users are active each day. The messaging volume is almost on part with the telecom SMS volume around the world, and 1 million new registered users each day are a sign of continued growth.

Facebook also said that $1 billion break-up fee will be given to WhatsApp if some problem results in the falling of the acquisition. It is said that the deal will be closed on $19 billion.

You can listen in on that call by clicking here

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