Popular messaging app WhatsApp is acquired by social networking giant Facebook. Facebook today announced the deal, WhatsApp is acquired for $19Billion out of which $4B will be paid in cash and $12B worth of Facebook shares. Another $3B restricted stock units will be vest for 4 years among its founder and employees. Whatsapp with a mere 50 employees will now work under FAcebook.
Facebook said in a press release:
“Facebook today announced that it has reached a definitive agreement to acquire WhatsApp, a rapidly growing cross-platform mobile messaging company, for a total of approximately $16 billion, including $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.
The acquisition supports Facebook and WhatsApp’s shared mission to bring more connectivity and utility to the world by delivering core internet services efficiently and affordably. The combination will help accelerate growth and user engagement across both companies.
“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.”
WhatsApp has also announced this deal on a blog post. WhatsApp said that for users nothing will be changed. WhatsApp says that it will be continue to operate independently. It will continue to be available for a nominal fee and it won’t show any ads. WhatsApp will remain same as it was before this deal.
Whatsapp on a blog post said:
Almost five years ago we started WhatsApp with a simple mission: building a cool product used globally by everybody. Nothing else mattered to us.
Today we are announcing a partnership with Facebook that will allow us to continue on that simple mission. Doing this will give WhatsApp the flexibility to grow and expand, while giving me, Brian, and the rest of our team more time to focus on building a communications service that’s as fast, affordable and personal as possible.
Here’s what will change for you, our users: nothing.
WhatsApp will remain autonomous and operate independently. You can continue to enjoy the service for a nominal fee. You can continue to use WhatsApp no matter where in the world you are, or what smartphone you’re using. And you can still count on absolutely no ads interrupting your communication. There would have been no partnership between our two companies if we had to compromise on the core principles that will always define our company, our vision and our product.
On a personal note, Brian and I couldn’t be more proud to be part of a small team of people who, in just under five years, built a communication service that now supports over 450 million monthly active users worldwide and over 320 million daily active users. They have helped re-define and revolutionize communication for the 21st century, and we couldn’t be more grateful.
What’s more irony about this deal is that its co-founder Brian Acton was once rejected by Facebook. Back in 2009, he undergone a interview at Facebook and he was rejected and after about five years his company is bought by Facebook. This is how things changed. In less than 5 years WhatsApp founders generated more Billions. Here’s a tweet by Brian Acton back in 2009.
Facebook turned me down. It was a great opportunity to connect with some fantastic people. Looking forward to life’s next adventure.
— Brian Acton (@brianacton) August 3, 2009
WhatsApp now boosts more than 450 million monthly active users and more than 70% users are daily users. Earlier this year google was also in the race of buying WhatsApp, but whatsApp was waiting for good deal. Now whatsApp has sealed the deal with Facebook.
WhatsApp is a cross-platform messaging app which available on iPhone, Android, BlackBerry, Windows Phone and Symbian Devices. Major reason for popularity of whatsapp is its support for all devices. All Major platforms are supported by whatsapp.