Yes, You read it right! Facebook buys Whatsapp for $19 Billion that includes $12 Billion in Stock, $4 Billion in Cash and $3 Billion in restricted Stock restricted stock for WhatsApp’s founders and employees that will vest over the next four years.
Whatsapp has grown big, huge and humongous since it’s inception and with more than 450 million monthly active users across the globe, Whatsapp has truly conquered the crowd of sms. It looks like Facebook was fond of this figure and has valued each user at $42.
In a blogpost, WhatsApp CEO Jan Koum confirmed the acquisition and thanked all the users for their next journey.
“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.” – Jan Koum
And Facebook too confirmed the acquisition in a Press Release quoting CEO Mark Zuckerberg’s words,
“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.”
While WhatsApp co-founder and CEO Jan Koum is going to join Facebook Board of Directors, Whatsapp will will continue to operate independently and retain its brand, confirms Facebook.
It was said that both Facebook and Google were chasing the mobile messaging service for a long time and the techworld went crazy when the news that Whatsapp turned down Google’s $1 Billion offer came out, but this stuff is the craziest of all time with $19 billion being paid for a Start-up!