Facebook Acquires Whatsapp for $16 Billion

Facebook Whatsapp

Facebook has purchased the biggest instant messaging app in the world, WhatsApp for a whooping sixteen billion US dollars. The deal consists of 12 billion dollars in Facebook shares and 4 billion dollars in cash, there are also some more billions set aside for employee retention and in case of deal failure.

Facebook posted the news on its blog and stated that WhatsApp will continue to operate independently with its brand image; Whatsapp CEO, Jan Koum will also join Facebook’s board. According to Facebook, Whatsapp has over 450 million mobile users with over 70% active daily, it also has a growth rate of 1 million users per day.

Facebook founder and CEO, Mark Zuckerberg in his statement said “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.” Jan Koum in his own statement said , “WhatsApp’s extremely high user engagement and rapid growth are driven by the simple, powerful and instantaneous messaging capabilities we provide.”

The Whatsapp CEO also wrote this on the Whatsapp blog: “ Here’s what will change for you, our users: nothing. WhatsApp will remain autonomous and operate independently. You can continue to enjoy the service for a nominal fee. You can continue to use WhatsApp no matter where in the world you are, or what smartphone you’re using. And you can still count on absolutely no ads interrupting your communication. There would have been no partnership between our two companies if we had to compromise on the core principles that will always define our company, our vision and our product.”