Facebook is buying the popular messaging app WhatsApp for $19bn. The Facebook said in a statement that it would pay $4bn in cash and $15bn in Facebook shares as part of the deal.
WhatsApp is the famous messaging app that allow its users to chat with their friends and send messages to them over internet connections. Facebook has posted about this acquisition in its blog where the company has announced that WhatsApp will continue to operate independently and retain its brand. Also, the WhatsApp co-founder and CEO Jan Koum will join Facebook’s board.
WhatsApp co-founder Jan Koum said in a statement “We’re excited and honored to partner with Mark and Facebook as we continue to bring our product to more people around the world,” WhatsApp has over 450 million active users and this number is growing continuously. “WhatsApp is on a path to connect 1 billion people. The services that reach that milestone are all incredibly valuable,” said Mark Zuckerberg, Facebook founder and CEO. “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.”
Zuckerberg continued in a post to his Facebook page (https://www.facebook.com/zuck/posts/10101272463589561): “WhatsApp had every option in the world, so I’m thrilled that they chose to work with us. I’m looking forward to what Facebook and WhatsApp can do together, and to developing great new mobile services that give people even more options for connecting.
I’ve also known Jan for a long time, and I know that we both share the vision of making the world more open and connected. I’m particularly happy that Jan has agreed to join the Facebook board and partner with me to shape Facebook’s future as well as WhatsApp’s.”
In a post on the WhatsApp blog Koum said that WhatsApp will remain autonomous and will operate independently and its users can continue to enjoy its service for a very nominal fee. WhatsApp will also keep its subscription fees, which amount to $1 per user after the first year of use.
Before this acquisition, Facebook’s biggest acquisition was Instagram for $1bn in 2012. Let’s hope that this acquisition will put immediate focus on increasing WhatsApp reach and popularity.