Social media giant Facebook announced today that it has acquired WhatsApp. This is one of biggest deal in tech industry. The amount which for which Facebook has acquired WhatsApp is $19 Billion. WhatsApp was a messaging service started in 2009 by two former Yahoo employees named Jan Koum (CEO) and Brian Acton. WhatsApp has around 450 million active users all over world and expecting to reach 1 billion soon as 1 million new users get added every day.
According to the deal, WhatsApp includes 183,865,778 shares of Facebook stock, valued at $12 billion, along with $4 billion in cash. After acquisition closes, Facebook has promised to grant 45,966,444 restricted stock units (RSUs) to WhatsApp founders and employees, tacking on an additional $3 billion in value to the deal. Additional RSUs will vest over four years following closing.
“I’m excited to announce that we’ve agreed to acquire WhatsApp and that their entire team will be joining us at Facebook. Our mission is to make the world more open and connected. We do this by building services that help people share any type of content with any group of people they want. WhatsApp will help us do this by continuing to develop a service that people around the world love to use every day.
WhatsApp is a simple, fast and reliable mobile messaging service that is used by over 450 million people on every major mobile platform. More than 1 million people sign up for WhatsApp every day and it is on its way to connecting one billion people. More and more people rely on WhatsApp to communicate with all of their contacts every day.
WhatsApp will continue to operate independently within Facebook. The product roadmap will remain unchanged and the team is going to stay in Mountain View. Over the next few years, we’re going to work hard to help WhatsApp grow and connect the whole world. We also expect that WhatsApp will add to our efforts forInternet.org, our partnership to make basic internet services affordable for everyone.
WhatsApp had every option in the world, so I’m thrilled that they chose to work with us. I’m looking forward to what Facebook and WhatsApp can do together, and to developing great new mobile services that give people even more options for connecting. I’ve also known Jan for a long time, and I know that we both share the vision of making the world more open and connected. I’m particularly happy that Jan has agreed to join the Facebook board and partner with me to shape Facebook’s future as well as WhatsApp’s.
Jan and the WhatsApp team have done some amazing work to connect almost half a billion people. I can’t wait for them to join Facebook and help us connect the rest of the world” said Mark Zuckerberg, founder and CEO of Facebook.
“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” said Jan Koum, founder and CEO of WhatsApp.