Facebook is Buying WhatsApp Messenger for $16 Billion

Facebook is Buying WhatsApp Messenger for $16 Billion

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Facebook has announced that it's reached an agreement to acquire WhatsApp for a total of approximately $16 billion.

WhatsApp Messenger is a smartphone messenger available for iPhone and other smartphones that uses your 3G or WiFi (when available) to message with friends and family.

The transaction includes $4 billion in cash and approximately $12 billion worth of Facebook shares. The agreement also provides for an additional $3 billion in restricted stock units to be granted to WhatsApp’s founders and employees that will vest over four years subsequent to closing.

Facebook notes that over 450 million people use the service each month and 70% of those people are active on a given day. WhatsApp's volume is approaching the entire global telecom SMS volume and it has continued strong growth, currently adding more than 1 million new registered users per day.

"WhatsApp is on a path to connect 1 billion people. The services that reach that milestone are all incredibly valuable," said Mark Zuckerberg, Facebook founder and CEO. "I've known Jan for a long time and I'm excited to partner with him and his team to make the world more open and connected."

Jan Koum, WhatsApp co-founder and CEO, said, “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.”

Upon closing of the deal, all outstanding shares of WhatsApp capital stock and options to purchase WhatsApp capital stock will be cancelled in exchange for $4 billion in cash and 183,865,778 shares of Facebook Class A common stock (worth $12 billion based on the average closing price of the six trading days preceding February 18, 2014 of $65.2650 per share). In addition, upon closing, Facebook will grant 45,966,444 restricted stock units to WhatsApp employees (worth $3 billion based on the average closing price of the six trading days preceding February 18, 2014 of $65.2650 per share). As of February 17, 2014, Facebook had 2,551,654,996 Class A and B shares outstanding plus approximately 139 million dilutive securities primarily consisting of unvested RSUs. The Class A common stock and RSUs issued to WhatsApp shareholders and employees upon closing will represent 7.9% of Facebook shares based on current shares and RSUs outstanding.

In the event of termination of the Merger Agreement under certain circumstances principally related to a failure to obtain required regulatory approvals, the Merger Agreement provides for Facebook to pay WhatsApp a fee of $1 billion in cash and to issue to WhatsApp a number of shares of Facebook’s Class A common stock equal to $1 billion based on the average closing price of the ten trading days preceding such termination date.

You can download WhatsApp Messenger from the App Store for free.

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Facebook is Buying WhatsApp Messenger for $16 BillionFacebook is Buying WhatsApp Messenger for $16 BillionFacebook is Buying WhatsApp Messenger for $16 Billion

Facebook is Buying WhatsApp Messenger for $16 BillionFacebook is Buying WhatsApp Messenger for $16 Billion
El Compa - February 24, 2014 at 10:17am
Just another greedy company.
Mario - February 21, 2014 at 3:51pm
I am shocked there were 32 engineers on the whatsapp team and that there had to be an investor giving money. This application was a 2 man job and there is nothing complicated about it. I could have paid a firm $75,000 to make an app like this and than once it grew than somehow made some revenue and expanded.
1
ShadowOfAngelo - February 20, 2014 at 2:45pm
This is another way of preventing them from competing with facebook, is a dirt that is left to sell or very possibly they forced them, though the worse thing is that now the government can check everything what it has to see with WhatsApp
1
matrixmanianc - February 20, 2014 at 2:17pm
ok... have to delete it ASAP.... :-(
Bluez - February 20, 2014 at 4:51am
what if also all worker on Whatsapp Company become all employed of facebook..? if that happen then i thinks its worth it..
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