Facebook purchases WhatsApp for $19 Billion Dollars
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The latest of Facebook's acquisitions is a mobile messaging company called WhatsApp. Earlier today, Facebook announced they had purchased WhatsApp for $19 BILLION dollars. $4 billion of the acquision to be paid in cash, $12 billion in stock options and $3 billion in RSUs for employee retention. This is the the most costly known acquisition Facebook has made, Instagram being the previous title holder which sold in 2012 for a measly one billion dollars.
Facebook's interest in WhatsApp are likely due to the large user base. According to the press release posted by Facebook, WhatsApp boasts:
- Over 450 million people using the service each month;
- 70% of those people active on a given day;
- Messaging volume approaching the entire global telecom SMS volume; and
- Continued strong growth, currently adding more than 1 million new registered users per day.
Technology companies have been acquiring and absorbing each other for over a decade. Google, Facebook and Yahoo being the most nefarious company snatchers. In some cases both companies involved benefit, other times it just leads to failure.
What do you think of the acquisition? Is WhatsApp worth $19 Billion dollars and what does Facebook want with the application and network?