http://techcrunch.com/2014/02/19/facebook-buying-whatsapp-for-16b-in-cash-and-stock-plus-3b-in-rsusFacebook is purchasing messaging giant WhatsApp for $16B in cash and stock, according to a regulatory filing. The deal is being cut for $12B in Facebook shares, $4B in cash and an additional $3B in RSUs for employee retention.
A termination fee is attached to the deal that would cost Facebook $1B in cash and $1B in shares if the deal fails to pass regulatory muster.
Facebook has posted on its blog, detailing the reasoning behind the acquisition as well. The post notes that WhatsApp will continue to operate independently and retain its brand. In addition,. WhatsApp co-founder and CEO Jan Koum will join Facebookâ€™s board.
Facebook notes that WhatsApp has over 450M MAUs, with 70% of those active each day. In a staggering comparison, Facebook also notes that the messaging volume of WhatsApp approaches the SMS volume of the entire global telecom industry â€” and that itâ€™s adding 1M users a day.
WhatsApp is on a path to connect 1 billion people. The services that reach that milestone are all incredibly valuable,â€ said Mark Zuckerberg, Facebook founder and CEO in a statement. â€œIâ€™ve known Jan for a long time and Iâ€™m excited to partner with him and his team to make the world more open and connected.â€
More to followâ€¦
The moment I read this, all I could think of was WOW and WTF at the same time. Whatsapp was already on its way to become an ubiquitous platform for mobile messaging, and with Facebook losing out on getting Snapchat and its own mobile messaging platform, I think this is a fantastic deal. 450 million monthly active users does come at a price, in this case around $35 per user. Not a bad deal if you think of it from that point of view, but still, holy moly...
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