wp

Facebook Closes WhatsApp Purchase

Posted by Sara | Opinion | Wednesday 8 October 2014 6:15 am
Share This Article
pinterest this page

Facebook Closes WhatsApp Purchase

Facebook has closed its acquisition of WhatsApp, mobile messaging service, in a deal that is now worth $21.8 billion, up from the original $19 billion deal struck primarily because of the rising stock price of the social network giant since February.

Menlo Park, California-based Facebook said it has named WhatsApp co-founder and CEO Jan Koum to its board of directors. WhatsApp has more than 500 million users and the mobile messaging service is rapidly growing especially in Brazil, India, Mexico, and Russia.

The Facebook-WhatsApp deal was hashed out in the house of Mark Zuckerberg over the course of a few days in February and sealed over a bottle of Jonnie Walker scotch. Last February, WhatsApp founders Jan Koum and Brian Acton became billionaires when it was announced by Facebook that it was buying the mobile messaging service for a jaw-dropping $19 billion. Facebook, as part of its attempt to win regulatory approval, promised on February 19 this year that WhatsApp would remain a separate entity.

 

In an SEC filing over the weekend, Facebook said it will now award 177.8 million shares of its Class A common stock and $4.59 billion in cash to the shareholders of WhatsApp plus 45.9 million shares (restricted stock units) to employees of WhatsApp to complete the deal. In a document filed with the US Securities and Exchange Commission, it was revealed that @WhatsApp will live on as a wholly owned subsidiary of Facebook. It was further disclosed that WhatsApp co-founder and CEO Jan Koum will become a member of Facebook’s board of directors.

Tags: , , , ,

4 Comments

  1. Comment by columbusremley — October 13, 2014 @ 8:36 am

    An intriguing discussion is definitely worth comment.
    There’s no doubt that that you ought to publish more
    about this issue, it may not be a taboo subject
    but generally folks don’t talk about such subjects.
    To the next! Best wishes!!

  2. Comment by Christopher — October 13, 2014 @ 5:10 pm

    I always emailed this weblog post page to all my contacts,
    because if like to read it then my links will too.

  3. Comment by lindseyreginald — October 16, 2014 @ 3:57 am

    I absolutely love your blog and find the majority of your post’s to
    be exactly what I’m looking for. Does one offer guest writers to write content for yourself?
    I wouldn’t mind writing a post or elaborating on a lot of the
    subjects you write concerning here. Again, awesome
    blog!

  4. Comment by preciousblosseville — October 19, 2014 @ 7:08 am

    Your style is really unique compared to other folks I have read stuff from.
    Many thanks for posting when you have the opportunity, Guess I’ll just
    book mark this web site.

RSS feed for comments on this post.

Sorry, the comment form is closed at this time.