M A I N   N E W S

Facebook to acquire WhatsApp for $19 bn

New York, February 20
Facebook will acquire popular mobile messaging service WhatsApp for $19 billion in a cash-and-stock deal, bolstering the social networking giant’s presence in mobile communications through its largest-ever acquisition.

The hefty transaction—that includes $12 billion worth of Facebook shares, $4 billion in cash and $3 billion in restricted stock units — will boost the world’s biggest social network by adding the 450 million users of WhatsApp, including a significant number of youth.

“The acquisition supports Facebook and WhatsApp’s shared mission to bring more connectivity and utility to the world by delivering core Internet services efficiently and affordably,” Facebook said.

The Mark Zuckerberg-led firm said its biggest acquisition so far would not impact WhatsApp’s brand, which would be maintained and the company’s headquarters would remain in California’s Mountain View.

“WhatsApp is on a path to connect one billion people. The services that reach that milestone are all incredibly valuable,” Zuckerberg said.

“I’ve known (WhatsApp founder, CEO) Jan (Koum) for a long time and I'm excited to partner with him and his team to make the world more open and connected.”

Koum will join Facebook Board of Directors under the agreement that will grant WhatsApp’s founders and employees restricted stock units to vest over four years following the closing of the deal.

Koum said in a blog: “Today, we are announcing a partnership with Facebook that will allow us to continue on that simple mission. Doing this will give WhatsApp the flexibility to grow.” — PTI

Tightening Fb's grip

• The deal will provide Facebook an entrée to 450 million new users, including a significant number of youth
• It will help Facebook expand footprint in Europe, Latin America and Asia
• WhatsApp's core messaging product and Facebook's existing messenger app will continue to operate as standalone applications