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Facebook buys WhatsApp for $19 billion

Arthur

By Arthur
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Arthur

Arthur

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That's sixteen nineteen Instagrams if you include the extra $3 billion! :eek:

 

Sources: WhatsApp / Facebook (via Android Police / Engadget / TechCrunch / The Verge)

 

Facebook Is Buying Messaging App WhatsApp For Approximately $19 Billion In Cash And Stock

Facebook is again throwing money around to get a leg up on the competition. The social network is reportedly buying messaging app WhatsApp for a staggering $16 billion in cash and stock, plus an extra $3 billion or so in stock for WhatsApp employees. For those keeping track, that's 19 Instagrams.

 

The base $16 billion is split up as $12 billion worth of stock and $4 billion cash. The deal also includes an extra $3 billion in Facebook stock (45,966,444 restricted shares) to WhatsApp employees after the deal closes. The $3 billion number is based on the stock price right now – it could be more or less when the deal closes.

 

Facebook has until August 19, 2014 to get things done on its end, or WhatsApp is free to pull out and gets $1 billion in cash and $1 billion in Facebook stock.

 

WhatsApp says it has about 450 million users, which Facebook would have access to. However, many of those users might already be on Facebook. This may also be a reaction to the recent purchase of Viber by Ratuken. WhatsApp will reportedly remain a separate product with its own app and no unnecessary Facebook integration or ads.

 

Facebook

Almost five years ago we started WhatsApp with a simple mission: building a cool product used globally by everybody. Nothing else mattered to us.

 

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 and expand, while giving me, Brian, and the rest of our team more time to focus on building a communications service that’s as fast, affordable and personal as possible.

 

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.

Edited by Arthur
GREED

GREED

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Or a 'your messages from the past year in a photo montage'... I don't want to remember most of the drunk crap I send to people and some people I want to forget!
localzuk

localzuk

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The tech industry is just turning into the household goods industry. A few big names owning everything.

 

If anyone has watched the rather excellent TV series Continuum, that's what we're heading for...

Nibiru

Nibiru

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Its only free for the first year, after which you pay for it. Its only a few dollars though.

 

If you ignore the pay nags you get free time extensions - ive had whatsapp for over 18 months without paying a penny to them ;)

elsiegee40

elsiegee40

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Facebook founder Mark Zuckerberg described WhatsApp's services as "incredibly valuable"

 

Somehow this doesn't fill me with joy... or suggest that free extensions will continue. :(

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