Facebook announces purchase of WhatsApp for $19bn

The social media giant, Facebook announced purchased popular mobile messaging company WhatsApp for a whopping $19 billion. To date, it is the largest acquisition by the Mark Zuckerberg-led firm, which will give it a stronghold in the market for messaging. (Facebook HQ:Menlo Park, California, US).

• The whopping acquisition price includes $4 billion in cash, about $12 billion worth of Facebook shares and $3 billion in restricted stock units to be granted to WhatsApp founders and employees that will vest over four years following the closing of the deal.

About mobile messaging company WhatsApp

• A cross-platform mobile app that allows users to exchange messages without having to pay telecom charges.
• In other words, it is simple, fast and reliable mobile messaging service that is used by over 450 million people on every major mobile platform.

Why Facebook bought WhatsApp?
The acquisition of WhatsApp by Facebook is to speed up the company’s ability to bring connectivity and utility around the world. As part of the deal, the WhatsApp co-founder and CEO Jan Koum would join the Facebook board.

• Benefit: WhatsApp would complement the existing chat and messaging services to provide new tools for Facebook community.
• WhatsApp’s core messaging product and Facebook’s existing messenger app will continue to operate as standalone applications.

The acquisition will not impact the WhatsApp’s brand and the company’s headquarters will remain in California’s Mountain View.

Month: Current Affairs - February, 2014