20 February 2014

Facebook Buys WhatsApp For A Total of $19 Billion Mega-Deal Price

Did you know that the co-founder of Whatsapp, Brian Acton, was rejected for jobs at Facebook and Twitter in 2009?

Facebook has agreed to acquire WhatsApp, the most popular messaging app with incredibly and currently more than 450 million users, for $16 Billion in cash and stock.

Why Facebook Buys WhatsApp?

Some experts argued that WhatsApp posed a threat to Facebook's Business. Also Zuckerberg also announced that:
"The growth rate they have today and the monetization that's early but promising and in place, we see a clear trajectory ahead and are excited to work together on this."

According to Mashable, the deal was by far Facebook's LARGEST acquisition to date in late 2012.

In the Nasdaq sec-filing report, Facebook will pay $12 Billion in stock based on the average closing price, $4 billion in cash to existing WhatsApp security holders, and $3 billion in restricted stock units to WhatsApp employees. (Total deal price is $19 billion).
Facebook and Twitter has turned Brian Acton down, co-founder of WhatApp along with Jan Koom who were former Yahoo! engineers. Today, Facebook will buy WhatsApp for a total deal price of $19 billions in cash and stock. Indeed, life is unpredictable.

What is WhatsApp

WhatsApp is a mobile messaging app that lets the user to send message for FREE with any smartphone platform. In 2009, it was founded by two former Yahoo! engineers, Brian Acton(American) and Jan Koum( Ukrainian).

"WhatsApp is on a path to connect 1 billion people. The services that reach that milestone are all incredibly valuable," Mark Zuckerberg, Facebook's cofounder and CEO

Quick infograph of Digital Inspiration, 1 WhatsApp is equivalent of 19 Instagram.(Facebook buys Instagram for $1 billion)
Image: Digital Inspiration 

WhatsApp will continue to operate independently. Facebook will expect to close deal this year.


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