Facebook send the tech world in a frenzy by announcing that it would be acquiring WhatsApp for an insanely huge deal of $19 billion. The deal includes $4 billion in cash, $12 billion in Facebook shares and an additional $3 billion in vesting restricted stock units for the WhatsApp team over the next four years.
WhatsApp, the cross-platform messaging service at the time of acquisition has 450 million users and is growing by 1 million users every day. If it shows the same growth curve, it would reach the magical 1 billion user base, much faster than the time Facebook took to reach.
Mobile Messaging apps have been hot of late with larger tech companies roving over them, WhatsApp is undoubtedly the clear leader and company with a largest brand recollection in this domain. It is most active in the emerging market and the deal will leverage Facebook in reaching out to the emerging markets where the next big mobile explosion is awaiting in terms of market reach.
Interesting Jan Koum, the founder and Acton, the co-founders applied for a job at Facebook in 2007 and were rejected. They could thank Facebook a (19) billion times now for that.
In case you are interested in reading Facebook’s press release, head over HERE