Facebook Buys Whatsapp for $19 Billion

February 20, 2014 | 0

Facebook Inc has bought the world’s fastest growing mobile messaging brand Whatsapp for $19 billion in cash and stock, boosting its popularity among the younger crowd.  The acquisition is a huge stunner of news.  The move also makes  Whatsapp founders Jan Koum and Brian Action  billionaires.  Forbes have quoted that Koum holds 45 percent stake in the company, while Acton owns more than 20 percent

Facebook said on Wednesday it will pay $4 billion in cash and about $12 billion in stock in its biggest acquisition yet, turning the $1 billion it paid for photo-sharing app Instagram into just another statistic.

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Facebook promised to keep the WhatsApp brand and service, and pledged a $1 billion cash break-up fee if the deal did not work out.

Mark Zuckberg wrote on his blog, why he was acquiring Whatsapp.

‘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.

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WhatsApp is a simple, fast and reliable mobile messaging service that is used by over 450m people on every major mobile platform. More than 1m people sign up for WhatsApp every day and it is on its way to connecting 1bn 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 will complement our existing chat and messaging services to provide new tools for our community. Facebook Messenger is widely used for chatting with your Facebook friends, and WhatsApp for communicating with all of your contacts and small groups of people. Since WhatsApp and Messenger serve such different and important uses, we will continue investing in both and making them each great products for everyone.

 

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