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Facebook Surpriese Everyone, to Buy WhatsApp for $19 Billion

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Facebook Acquires WhatsApp

Social Giant Facebook on February 19, 2014 announced that the company is indeed acquiring WhatsApp for a whopping total of $19 Billion. Facebook has agreed to pay $12 Billion in Shares, $4 Billion in Cash and a additional sum of $3 Billion in RSU’s for Employee Retention.

Regulatory Filing regarding the acquisition has already been done. In case of failure at the process, Facebook will shed $1 Billion in Cash and $ 1 Billion in Shares as Termination Fees.

[blockquote]Mark Zuckerber, Facebook Founder and CEO said, “WhatsApp is on a path to connect 1 billion people. The services that reach that milestone are all incredibly valuable”.[/blockquote]

WhatsApp is one of the fastest growing Mobile messaging service boasting over 450 Million Users monthly of which 70% are active daily. The service is growing by a million users Daily with total messages more than the total SMS Volumes globally.

WhatsApp has a much deeper penetration outside the U.S. of which majority of its users are Youth. This acquisition might boost the Facebook’s social footprint internationally.

[blockquote]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.”[/blockquote]

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