Facebook has finally acquired messaging giant WhatsApp for$16B in cash and stock, according to aregulatory filing. The deal is being cut for$12B in Facebook shares, $4B in cash and an additional $3B in RSUs for employee retention.
A termination fee is attached to the deal that would cost Facebook $1B in cash and $1B in shares if the deal fails to pass regulatory muster.
Mark Zuckerberg wrote:
Iím excited to announce that weíve
agreed to acquire WhatsApp and that
their entire team will be joining us at
Our mission is to make the world
more open and connected. We do
this by building services that help
people share any type of content with
any group of people they want.
WhatsApp will help us do this by
continuing to develop a service that
people around the world love to use
WhatsApp is a simple, fast and
reliable mobile messaging service that
is used by over 450 million people on
every major mobile platform. More
than 1 million people sign up for
WhatsApp every day and it is on its
way to connecting one billion people.
More and more people rely on
WhatsApp to communicate with all of
their contacts every day.
WhatsApp will continue to operate
independently within Facebook. The
product roadmap will remain
unchanged and the team is going to
stay in Mountain View. Over the next
few years, we're going to work hard
to help WhatsApp grow and connect
the whole world. We also expect that
WhatsApp will add to our efforts
forInternet.org, our partnership to
make basic internet services
affordable for everyone.
WhatsApp will complement our
existing chat and messaging services
to provide new tools for our
community. Facebook Messenger is
widely used for chatting with your
Facebook friends, and WhatsApp for
communicating with all of your
contacts and small groups of people.
Since WhatsApp and Messenger serve
such different and important uses, we
will continue investing in both and
making them each great products for
WhatsApp had every option in the
world, so Iím thrilled that they chose
to work with us. Iím looking forward
to what Facebook and WhatsApp can
do together, and to developing great
new mobile services that give people
even more options for connecting.
I've also known Jan for a long time,
and I know that we both share the
vision of making the world more
open and connected. I'm particularly
happy that Jan has agreed to join the
Facebook board and partner with me
to shape Facebook's future as well as
Jan and the WhatsApp team have
done some amazing work to connect
almost half a billion people. I canít
wait for them to join Facebook and
help us connect the rest of the world.
P.S Found out that in 2009, Facebook AND
Twitter denied Whatsapp co-founder
Brian Acton a job. Today he sold his
company for $16 billion. What must
have been a huge disappointment for
him at the time led to his greatest
blessing. Always Stay positive, It only gets better.