The fast-growing mobile messaging service WhatsApp, trendy among
teenagers, has been acquired by Facebook for more than $16 billion in
cash and stock, expanding the global footprint of the social networking
giant.
The deal bolsters the world’s biggest social network by
adding the 450 million users of WhatsApp, which will be operated
independently with its own board.
It is Facebook’s biggest
acquisition and comes less than two years after Mark Zuckerberg’s firm
raised $16 billion in the richest tech sector public stock offering.
The
purchase includes $12 billion in Facebook shares and $4 billion cash.
It calls for an additional $3 billion in restricted stock units to be
granted to WhatsApp founders and employees that will vest over four
years.
“The acquisition supports Facebook and WhatsApp’s shared
mission to bring more connectivity and utility to the world by
delivering core Internet services efficiently and affordably,” said a
Facebook statement.
Facebook reportedly sought to acquire another hot messaging firm, Snapchat, for $3 billion last year.
“WhatsApp
is on a path to connect one billion people. The services that reach
that milestone are all incredibly valuable,” said Zuckerberg, Facebook
founder and chief executive.
“I’ve known (WhatsApp founder) Jan
(Koum) for a long time and I’m excited to partner with him and his team
to make the world more open and connected.”
WhatsApp is a cross-platform mobile app which allows users to exchange messages without having to pay telecom charges.
“Almost
five years ago we started WhatsApp with a simple mission: building a
cool product used globally by everybody. Nothing else mattered to us,”
Koum said in a blog post.
“Today we are announcing a partnership with Facebook that will allow us to continue on that simple mission.
“Doing
this will give WhatsApp the flexibility to grow and expand, while
giving me, (co-founder) Brian (Acton), and the rest of our team more
time to focus on building a communications service that’s as fast,
affordable and personal as possible.”
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