Thursday, February 20, 2014

Facebook acquires Whatsapp for $19 billion

The mega social media giant has announced the acquisition of messaging app Whatsapp for a price of $19 billion. $4 billion will be paid in cash, $16 billion in Facebook shares and $3 billion in vesting restricted stock units.

Facebook has reiterated that WhatsApp will continue to operate independently without any interruption from Facebook and WhatsApp CEO, Jan Koum will join Facebook’s board of directors.
Facebook acquires WhatsApp for $19 billion
Facebook hooks WhatsApp. Image: techcrunch
WhatsApp is on a path to connect 1 billion people. The services that reach that milestone are all incredibly valuable,said Facebook founder and CEO, Mark Zuckerberg. “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.
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 products to more people around the world.” WhatsApp co-founder and CEO, Jan Koum said.
WhatsApp has been growing in leaps and bounds since last year and the most popular messaging app now has 450 million monthly active users, up from 400 million in December, 2013.
When you consider that WhatsApp now has 350 million daily users while Facebook has 556 million mobile daily active users, then you see that it is an important acquisition for Facebook.
WhatsApp message volume is growing so rapidly that it will soon exceed global telecom SMS volume and it also add more than one million registered users in a day.

It is very important that Facebook is not looking to interrupt WhatsApp services, the way it did when it acquired Instagram. It is yet unknown what will be the fate of Facebook Messenger with the acquisition of a direct rival: WhatsApp.
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