Facebook Inc (FB) is acquiring WhatsApp For $19 billion
Facebook Inc (NASDAQ:FB) is acquiring WhatsApp, the popular mobile messaging service, for $19 billion. The deal is being paid for through cash and stock. It includes $12 billion in Facebook shares, $4 billion in cash, and $3 billion in RSUs. There is a termination fee of $1 billion in cash and $1 billion in shares if the deal fails to pass through regulations.
WhatsApp will continue to operate independently and retain their brand. WhatsApp co-founder and CEO Jan Koum will join Facebook’s board. WhatsApp has over 450 million monthly active users and 70% of them are active every day.
“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,” stated Jan Koum, WhatsApp co-founder and CEO.
WhatsApp processes over 50 billion messages per day across 7 platforms. The company has 32 engineers, which makes the ratio 1 engineer to every 14 million users. The company did not spend any money on marketing and they do not employ any markets. All of their growth came from users and word-of-mouth.This article was written by Amit Chowdhry. You can follow me at @amitchowdhry or on Google+ at +AmitChowdhry