Facebook to acquire WhatsApp, a messaging platform for $16 billion in cash and stock.
The giant amount is the social leader’s biggest purchase till time and shows a new step forward in the excitement to grab the popular interacting technology base.
Facebook will spend $4 billion cash and give $12 billion of Facebook shares to own WhatsApp. Other than this $3 billion in controlled stock segments will be offered to WhatsApp owners and employees. All such segments are meant to belong over the next four years.
In any mean, Facebook is offering an elevated price for a mobile application that is extremely used all across the world but not similarly famous in the United States. Along with the controlled stocks, the purchase ultimately figures to $345 million for each one of the organization’s 55 employees.
The messaging platform owns more than 450 million monthly active users, with 70% are users on a specific day. In this sense, Facebook is spending about $40 per user.
“WhatsApp is on a path to connect one billion people. The services that reach that milestone are all incredibly valuable,” Mark Zuckerberg, Facebook owner and CEO disclosed in a statement. “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,” he added, referring to Jan Koum, WhatsApp’s chief executive.
Jan Koum and Brian Acton, earlier working for Yahoo, came up with this smart messaging platform – WhatsApp in 2009.
Opposite to regular business tycoons, the two inventors were majorly busy in keeping their services up-to-mark. Mr. Acton dedicated his efforts on the servers, while Mr. Koum ensured that the entire product is perfect and made sure it worked consistently everywhere. Both desired to make messaging widespread and accessible to all, disregard of model of phone the user has, the location they reside or their income. Also, they were stubborn on keeping the advertisements away from their services as they believe that promotions distract users from close communications.
WhatsApp got approx. $10 million as funds after 2 years of the company’s launch. In no time it started making profits. Facebook, at the same time has had difficulties in managing the messaging segment.