Facebook agrees to purchase Whatsapp for $19 billion - Web Freaks (Where Noobs Become Pros)


Wednesday, 19 February 2014

Facebook agrees to purchase Whatsapp for $19 billion

Facebook has agreed to purchase WhatsApp. The social networking giant will pay the staggering $
19 billion for the massively popular cross- platform messaging client in cash and stock ($4billion in cash, $12 billion in stock, and additional $3 billion in restricted stock which will vest over
the four years after the deal’s closing).As part of the agreement, WhatsApp will continue
to operate independently. Jan Koum, one of the messenger’s creators and current CEO, assures
WhatsApp users that there will be “absolutely no ads interrupting your communication”.
According to Facebook’s CEO, the company counts on its new acquisition with over 450 million users (70% active on a daily basis) to complement its
currently available messaging services. Furthermore, the CEO of WhatsApp will join the
social network’s board of directors. Facebook’s acquisition of WhatsApp comes less
than a week after Viber got acquired by Rakuten . At $900 million however, Viber (300 million users
on its own) looks like a bargain compared to WhatsApp and its $16 billion valuation.

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