Facebook to Buy WhatsApp For $19 Billion in Cash, Stock
0 0 0
Share
Article

Facebook to Buy WhatsApp For $19 Billion in Cash, Stock

Facebook to Buy WhatsApp For $19 Billion in Cash, Stock
   The world's most popular social networking site Facebook recently made a stunning announcement to the world media. News reports reveal that the Internet giant reached a record landmark agreement by dint of buying the fastest growing mobile messaging startup in the world, “WhatsApp”. The deal was concluded after Facebook agreed to shell out a massive record breaking acquisition fee of $16 billion to WhatsApp. The deal amount includes $12 billion in Facebook shares and a huge $4 billion in cash. What'sApp was founded just five years back in 2009 by the American duo of Jan Koum and Brian Acton, both former employees of tech giant Yahoo & experienced a meteoric rise in its fortunes within a very short time period. As of today, the form claims to have close to 200 million active online users in its portal. However the application will not be immediately integrated with Facebook and it will continue to operate independently. Reportedly this happens to be a record breaking purchase price shelled out for such a small company that employs only 55 people in its rolls. Reports also indicate that the purchase amount is actually $19 billion if the extra $3 billion that is to be invested in stock units is factored in. It seems that the founder members and employees of WhatsApp would be granted those additional $3 billion in stock options during the next 4 years. This unique amalgamation has propelled Koum and his business partner Brian Acton into the elite billionaires club. Forbes has even estimated that 45% stake of WhatsApp belongs to Jan and Acton possesses more than a fifth of the messaging giant’s shares. If this development manges to obtain proper regulatory approval, then Facebook is likely to go a step further and pay a break-up fee of $1 billion in cash and issue Facebook shares valued at $1 billion to WhatsApp. Even Facebook CEO Mark Zuckerberg has admitted in his statement that he is very happy and excited with this kind of joint venture since WhatsApp commands a wide global audience. The exorbitant acquisition amount of $19 billion also means that Facebook has calculated that WhatsApp is worth over $42 per user.
Share With The World
0 0 0

Facebook Conversation