Facebook to Buy Instant Mobile Messaging App WhatsApp for $19 Billion

Facebook to Buy Instant Mobile Messaging App WhatsApp for $19 Billion. Facebook will pay $4 billion in cash and 12 billion in the form of shares.

SAN FRANCISCO — The most popular Social Media Network on the web has acquired the most popular messaging service application WhatsApp for a huge sum of $19 bn which is the largest acquisition by  the Social Media major Facebook so far.

Read Mark Zuckerberg’s full wall post here

Being termed as the most powerful acquisition of the recent times,  it is creating a lot of curiosity among the financial analysts and the end users in the market alike. As many of the users are eagerly awaiting what more features will be available for the Facebook and WhatsApp users  from this combination, all the financial analysts are keenly studying what changes this can bring in Facebook from a financial point of view.

WhatsApp now has about 55 million users and a rapid growth rate. The acquisition was done in $4 bn in cash, $12 bn of facebook shares and $3 bnin restricted shares to be vested for the next four years to all the 55 employees of WhatsApp.

Mr Mark Zuckerberg said that the two companies would strive for a world more open and connected by allowing people to connect more freely and easily to express themselves. Jan Koum, the CEO of WhatsApp said that they are “excited and honoured to join Facebook”.

Mr Zuckerberg said that WhatsApp would be allowed to work as an independent service from its current office as it is now. Let us wait and see to what extent WhatsApp can change the face of Facebook and what great things they can come up with together.