Yesterday Facebook announced the $19 billion acquisition of WhatsApp. Facebook reportedly had to outbid Google Inc (NASDAQ:GOOG) for the deal. Over six months ago, Google approached WhatsApp to pay them in exchange for the right to be notified if they entered acquisition talks with other companies, according to sources with The Information.
This agreement would have been worth millions of dollars, but WhatsApp turned down this deal. This idea came from Google head of mergers and acquisitions Don Harrison.
Jessi Hempel at Fortune said that Google offered $10 billion for WhatsApp, but did not offer a board seat to the WhatsApp CEO. Facebook’s offer was worth around twice as much and WhatsApp’s CEO was given a board seat.