Facebook purchases WhatsApp for $19 billion

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Facebook, in their continued desire for a messaging platform, has agreed to purchase WhatsApp. The selling price is a whopping $16 billion in cash and Facebook stock, plus $3 billion in Restricted Stock Awards, or RSA. A regulatory filing details all the subtleties, but for now — we’re going to sit back and marvel at that price.

Of the $16 billion, $4 billion will be straight up cash — close to the $3 billion we heard Facebook offered for Snapchat. The remaining $12 billion will be Facebook common stock, while the $3 billion in RSU is for employee retention. There is a failsafe included, wherein Facebook will be charged $1 billion in cash and $1 billion in common shares should the deal not meet regulatory hurdles.

Facebook says WhatsApp has over 450 million Monthly Active Users, which is likely the main attraction here. Via a blog post, Facebook says WhatsApp will remain a standalone service and app. WhatsApp will also retain its branding.

This undoubtedly points the finger at advertisements, where Facebook has been focussed for some time. The failed acquisition of Snapchat was said to be almost all about mobile ads, and absorbing the monthly userbase. Of those 450 million monthly users, Facebook says 70% are also active on a daily basis.

Via the blog post, Mark Zuckerberg, Facebook CEO said “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.” WhatsApp CEO and founder Jan Kroum added “WhatsApp's extremely high user engagement and rapid growth are driven by the simple, powerful and instantaneous messaging capabilities we provide. We're excited and honored to partner with Mark and Facebook as we continue to bring our product to more people around the world.”
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Source: Link
 
There are now 5 threads on this. Some says $16b with $4b in cash. Yours says $19b with $3b in cash.

Mebbe breaking news is still broken.

Anyway, I'm not happy about this as I detest FB.
 
I see the price is $16b, rising to $19b if employees stay for 4 years. So there seems to be another $3b in it for current WhatsApp wekkas if they pitch up at the office for 48 months and breathe in and out.

I wonder how FB will ever get a return on this.
 
what concerns me is that whatsapp had a strong standing agent in app ads

facebook will probably change this if they want to see some return on investment.
 
Orihalcon said:
OFFS!

First bloody in app ad I see I jump ship...but to where?
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Mxit perhaps? Or even BBM? Wechat? There are a lot of alternatives.

But yes, was fun while it lasted. They will also most possibly force users to pay for their service now, rather than giving a free subscription for another year.
 
herbertk said:
BBM nooooo, Wechat not sure...

EDIT : come to think of it bbm is probably the better option no ads atleast... for now
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If there are no adverts then you have to pay for the free service, the adds are how they make their money and lots of it . if you want a brilliant free messaging service you have to accept that there will be adverts. if not pay for SMS service .
 
LOL, the issue is 90% of the people I know who use whatsapp don't have CC's so once trail is up they will all move to something free
 
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