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Facebook purchase whatsapp for 1$6b



Facebook is purchasing messaging giant WhatsApp for$16B in
cash and stock, according to aregulatory filing. The deal is being cut
for$12B in Facebook shares, $4B in cash and an additional $3B
in RSUs for employee retention.
A termination fee is attached to the deal that would cost Facebook
$1B in cash and $1B in shares if the deal fails to pass regulatory
Facebook hasposted on its blog, detailing the reasoning behind the
acquisition as well. The post notes that WhatsApp will continue to
operate independently and retain its brand. In addition,. WhatsApp
co-founder and CEO Jan Koum will join Facebook’s board.
Facebook notes that WhatsApphas over 450M MAUs, with 70%
of those active each day. In a staggering comparison, Facebook also
notes that the messaging volume of WhatsApp approaches the
SMSvolume of the entire global telecom industry — and that it’s
adding 1M users a day.
WhatsApp is on a path to connect 1 billion people. The services that
reach that milestone are all incredibly valuable,” said Mark
Zuckerberg, Facebook founderand CEO in a statement. “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
Facebook specifically calls out its deal with Instagram as a
template for how it will deal with WhatsApp:
Facebook fosters an environment where independent-minded
entrepreneurs can build companies, set their own direction and focus
on growth while also benefiting from Facebook’sexpertise, resources
and scale. This approach is working well with Instagram, and
WhatsApp will operate in this manner. WhatsApp’s brandwill be
maintained; its headquarters will remain in Mountain View, CA;
Jan Koum will join Facebook’s Board of Directors; and
WhatsApp’s core messaging product and Facebook’s existing
Messenger app will continue to operate as standalone applications.
In a post on the WhatsApp blog,Koum elaborates on that:
Here’s what will change for you, our users:
nothing. WhatsApp will remain autonomous and operate
independently. You can continue to enjoy the service for a nominal
fee. You can continue to use WhatsApp no matter where in the
world you are, or what smartphone you’re using. And you can still
count on absolutely no ads interrupting your communication. There
would have been no partnership between our two companies if we
had to compromise on the core principles that will always define our
company, our vision and our product.

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