23 February 2014

Facebook Buying WhatsApp

Facebook Buying WhatsApp

Facebook has entered into an agreement to purchase WhatsApp, the worldwide most popular messaging client, for $16 billion in cash and stock. A document filed with the SEC  confirms this huge purchase.Last year’s $1 billion purchase of Instagram is now nothing compared to this $16 billion WhatsApp deal.The company says WhatsApp will continue to operate independently after the acquisition — separate from Facebook Messenger — but claims the deal "accelerates Facebook’s ability to bring connectivity and utility to the world." Facebook is also throwing in an extra $3 billion in restricted stock units that will go to WhatsApp’s employees; those will vest over a period of four years after the acquisition is finalized.

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At present, WhatsApp has 450 million users across different mobile platforms: BlackBerry, Android, and iOS. The app even became more popular than the Facebook messaging app. With Facebook taking over, the number of users could reach up to a billion.

“WhatsApp is on a path to connect 1 billion people. The services that reach that milestone are all incredibly valuable. 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,” – Mark Zuckerberg
WhatsApp was founded by a Ukrainian immigrant who dropped out of college, Jan Koum, and a Stanford alumnus, Brian Acton, WhatsApp is a Silicon Valley startup fairy tale, rocketing to 450 million users in five years and adding another million daily.

WhatsApp was the leader among a wave of smartphone-based messaging apps that are now sweeping across North America, Asia and Europe. Although WhatsApp has adhered strictly to its core functionality of mimicking texting, other apps, such as Line in Japan or Tencent Holdings Ltd's WeChat, offer games or even e-commerce on top of their popular messaging features.

The deal provides Facebook entree to new users, including teens who eschew the mainstream social networks but prefer WhatsApp and rivals, which have exploded in size as private messaging takes off.

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So this was one of the biggest deal ever made by any company,let's see how'd this deal work in future days.

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4 comments: Leave Your Comments

  1. oh, Facebook has been buying apps lately. I'm sure they'll make a lot of profit from it because I've seen a lot of teens using whats app lately.

  2. I guess my friend Mark just got irritated by the fact Whatsapp got FB younger audience and that is his way to eliminate competition.

  3. The rich get richer. That is a quote by Earnest Hemingway. What more should I say?