Facebook to Buy WhatsApp for $19 Billion
Finally Facebook is buying popular messaging app WhatsApp for $19 billion in cash and stock. This has been disclosed in the regulatory filing. This would be the biggest Internet deal since ime Warner’s merger with AOL of $124 billion. Facebook and WhatsApp deal includes $12 billion in stock, $4billion in cash and $3 billion in restricted shares.
Whatsapp is leading messaging app for mobile devices. It has more than 450 million users with 1 millon new registration per day. 70% WhatsApp users are daily active. Now, Whatsapp has taken over the traditional SMS.
With Messegner, Facebook has tried a lot to compete with WhatsApp. But it couldn’t.
“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.”
Jan Koum, WhatsApp co-founder and CEO, said, “WhatsApp’s extremely high user engagement and rapid growth are driven by the simple, powerful and instantaneous messaging capabilities we provide. We’re excited and honored to partner with Mark and Facebook as we continue to bring our product to more people around the world.”
Even after this deal, WhatsApp will remain autonomous and operate independently. Users can continue enjoy WhatsApp for nominal fee they pay per year. WhatsApp also confirmed that you can continue enjoy the service with no ads interruption.
“Our team has always believed that neither cost and distance should ever prevent people from connecting with their friends and loved ones, and won’t rest until everyone, everywhere is empowered with that opportunity,” WhatsApp said.
WhatsApp management team is expected to join Facebook. Koum will also get a seat on Facebook’s board.