The world’s largest and most popular social networking site, Facebook acquires messaging giant WhatsApp for a whopping total amount of $19 Billion in cash, stocks and employee retention fees but keeps the service independent.
According to the Regulatory Filing of Facebook, the social network is purchasing messaging giant WhatsApp for $16 billion in cash and stock. The deal is being cut for $12 billion in Facebook shares, $4 billion in Facebook shares, $4 billion in cash and an additional $3 billion in RSUs for employee retention.
A termination fee of WhatsApp is also attached to the deal that would cost Facebook $1 billion in cash and $ billion in shares if the deals fails to p(–foul word(s) removed–) regulatory muster.
Facebook founder, Mark Zuckerberg detailed the deal and acquisition of WhatsApp on his official Facebook page aside from the post made by Facebook on their official Facebook blog.
According to the post made by Facebook and Mark Zuckerberg himself, the messaging app, WhatsApp will continue to operate independently and retain its brand. WhatsApp co-founder and CEO Jan Koum will also join Facebook’s board.
Facebook also noted that WhatsApp has over 450 million active users worldwide, with 70 percent of those are active each day. The WhatsApp SMS volume even approaches the SMS volume of the entire global telecom industry and WhatsApp is adding 1 million users a day.
Mark Zucberberg was even quoted as saying “WhatsApp is on a path to connect 1 billion people. The services that reach that milestone are all incredibly valuable,” said Mark Zuckerberg.
WhatsApp is a voice and text instant messaging platform with apps for almost every smartphone Operating System worldwide. It provides free service for the first year and costs a dollar annually after that.
