Social media giant Facebook Inc acquired WhatsApp for 19 billion dollars in a cash and stock deal on 19 February 2014.Whatsapp is a mobile messaging company.
Under the Agreement
WhatsApp co-founder and CEO Jan Koum will join Facebook Board of Directors. Also, the acquisition will not impact the WhatsApp’s brand, which will be maintained and the company’s headquarters will remain in California’s Mountain View.
WhatsApp’s core messaging product and Facebook’s existing messenger app will continue to operate as standalone applications. The acquisition price included 4 billion dollars in cash, about 12 billion dollars worth of Facebook shares and 3 billion dollars in restricted stock units to be granted to WhatsApp’s founders and employees. The deal would give WhatsApp the flexibility to grow and expand and noted that users of the service will not experience any change in usage.
WhatsApp Messenger is a cross-platform mobile messaging app which allows you to exchange messages without having to pay for SMS.
Jan Koum co-founded WhatsApp with Brian Acton in 2009, both former Yahoo executives.