All About Smartphones: Facebook Acquires Whatsapp For $16 Billion

Thursday, February 20, 2014

Facebook Acquires Whatsapp For $16 Billion

A rumor long ago was that Facebook and Google were bidding to buy Whatsapp for an unquoted price. The rumor was later dispelled and the matter became of the past.

However, this time, Facebook have agreed to acquire Whatsapp, the social messaging company/app for $16 Billion: this is not a rumor as it was confirmed by Facebook. According to Facebook, the $16 billion will include $4 billion in cash and about $12 billion worth of Facebook shares.

The agreement also provides for an additional $3 billion in restricted stock, to be granted to WhatsApp's founders and employees, that will vest over four years once the deal closes and also see the CEO of Whatsapp joint the board of directors at Facebook.

To date, this is the largest buy over that Facebook has done - the deal with Instagram ($715.3 million) doesn't even come close.

Facebook says it would keep Whatsapp as a separate entity just like it's doing on Instagram.

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