Facebook Acquisition Over Messaging App WhatsApp For $19 Billion.
Facebook has recently tried to increase their influence even further with acquiring a mobile messaging application, and they have succeeded. Recently Facebook manage to announce they have bought out the every fast-growing WhatsApp firm for about $16 billion in cash and stock. The deal also includes an addition of $3 billion in Facebook stock for employees of WhatsApp, who can see there share vest over the next couple of years.
This is the second recent grabbing acquisition done by Facebook recently, with them previously dishing out a $1 billion deal for instantgram that was announced back in 2012 during spring season. This new deal will have Facebook paying up to $4 billion in cash, along with around $12 billion in stock.
WhatsApp has defined itself as a “cross-platform mobile messaging app” that works on all major smartphone operating systems, and providing its users with a “superior SMS alternative.”
Of course with the wording like that its can only simple mean free. The application allows individuals to send message towards each other unlimited and for free text message. Another feature that was added sometime during the previous year was to record and voice message and send them to other Whatsapp users. The application is free to download, but at the moment requires a subscription after one year of bring in use. The current price is 99 cents for a year of service.
The company was founded by two former Yahoo! veterans less than five years ago, and based itself in Silicon Valley, according to various sources. At the moment, Whatsapp has over 55 employees, making the deal’s price tag extremely high.
Facebook has mention that WhatsApp will continue its normal modus operandi, with its own continued brand. The also mentioned that this acquisition will “accelerate Facebook’s ability to bring connectivity and utility to the world”.