Dinesh jain
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Facebook has completed its acquisition of the
mobile messaging service WhatsApp for almost
$22 billion, up from the original $19 billion
when the cash-and-stock deal was struck early
this year thanks in part to the rising price of
Facebook shares.
Facebook named WhatsApp co-founder and
CEO Jan Koum to its board Monday. WhatsApp
is by far the largest acquisition for the Menlo
Park, California company, and bigger than any
deals made by Google, Microsoft or Apple.
The price that Facebook was willing to pay
raised eyebrows when the buyout was
announced February 19, though analysts
agreed that landing the popular site made
sense. Including cash, stock and restricted
stock awarded to WhatsApp employees, the
deal is worth $21.8 billion based on Facebook's
stock price on Monday.
WhatsApp has been growing rapidly, especially
in developing countries like Brazil, India,
Mexico and Russia, and now has more than
500 million users.
WhatsApp lets users chat with their phone
contacts, both one-on-one and in groups. It
also allows people to send texts, photos,
videos and voice recordings over the Internet
and lets them text or call people overseas
without heavy charges. Free to use for the first
year and costing $1 per year after that, the
service has no advertising.
Facebook, which has its own mobile messaging
app called Messenger, plans to keep WhatsApp
as a separate service.
The acquisition was approved by antitrust
authority of the European Union on Friday.
Facebook's shares climbed 32 cents to $77.76
in afternoon trading on Monday.
Facebook closes WhatsApp purchase now worth .8 billion
mobile messaging service WhatsApp for almost
$22 billion, up from the original $19 billion
when the cash-and-stock deal was struck early
this year thanks in part to the rising price of
Facebook shares.
Facebook named WhatsApp co-founder and
CEO Jan Koum to its board Monday. WhatsApp
is by far the largest acquisition for the Menlo
Park, California company, and bigger than any
deals made by Google, Microsoft or Apple.
The price that Facebook was willing to pay
raised eyebrows when the buyout was
announced February 19, though analysts
agreed that landing the popular site made
sense. Including cash, stock and restricted
stock awarded to WhatsApp employees, the
deal is worth $21.8 billion based on Facebook's
stock price on Monday.
WhatsApp has been growing rapidly, especially
in developing countries like Brazil, India,
Mexico and Russia, and now has more than
500 million users.
WhatsApp lets users chat with their phone
contacts, both one-on-one and in groups. It
also allows people to send texts, photos,
videos and voice recordings over the Internet
and lets them text or call people overseas
without heavy charges. Free to use for the first
year and costing $1 per year after that, the
service has no advertising.
Facebook, which has its own mobile messaging
app called Messenger, plans to keep WhatsApp
as a separate service.
The acquisition was approved by antitrust
authority of the European Union on Friday.
Facebook's shares climbed 32 cents to $77.76
in afternoon trading on Monday.
Facebook closes WhatsApp purchase now worth .8 billion
