Facebook in agreement to purchase WhatsApp whose user base stands at 450 million
A filing has revealed that Social media giant Facebook is in an agreement to acquire popular messaging app WhatsApp.
Facebook will pay $12 billion in stock, $4 billion in cash and an additional $3 billion in restricted stock units to meet the purchasing power of acquiring WhatsApp. This brings the total price of the deal to $19 billion; it would also mark the biggest acquisition in the history of Facebook.
What You Need To Know About WhatsApp
In 2009, ex engineers of Yahoo, Jan Koun and Brian Action created WhatsApp, which would later become the most popular messaging app in the world. It allows users send instant messages and worked in low end phones as well, perfecting cross-compatibility. Currently, there are over 450 million people in the world using the app.
“WhatsApp is on a path to connect 1 billion people. The services that reach that milestone are all incredibly valuable,” Mark Zuckerberg, Facebook’s cofounder and CEO, said 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.”
Facebook acquired Instagram for $1 billion dollars, but if the WhatsApp deal doesn’t go through, Facebook will still have to pay WhatsApp $1 billion as breakup fee.