If you're a WhatsApp user, you may be interested in knowing that Facebook has now entered into agreements to purchase WhatsApp for a reported $16 billion. According to documents filed with SEC, the financial details will break down like this, $4 billion in cash and approximately $12 billion worth of Facebook shares. The agreement also provides for an additional $3 billion in restricted stock units to be granted to WhatsApp’s founders and employees that will vest over four years subsequent to closing.
Jan Koum, WhatsApp co-founder and CEO, said, “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.”
Additionally, Jan Koum will join the Facebook Board of Directors and and WhatsApp’s core messaging product and Facebook’s existing Messenger app will continue to operate as standalone applications. The deal is of course subject to approval but should it not work out, Facebook has agreed to pay WhatsApp a fee of $1 billion in cash and to issue to WhatsApp a number of shares of Facebook’s Class A common stock equal to $1 billion.
By WhatsApp count, over 450 million people are using the service each month and 70% of those people are active on a given day so knowing now that Facebook will be behind the operations, does that make you reconsider its use? I've honestly never used WhatsApp for any amount of time, it's always been BBM for me but some folks are fickle about who provides their services.