Facebook will be buying WhatsApp for $19 billion as the social media company seeks to spread further into the mobile world.
WhatsApp, one of the most popular messaging applications that is available on most smartphone platforms, is handing over the reigns to Facebook. The free texting app has over 450 million users under its wings and over 70 percent are active. This gives Facebook a unique opportunity to gain an even larger standing in both the mobile and internet scene.
While WhatsApp will continue to work and operate independently, WhatsApp CEO Jan Korm will be joining Facebook’s board. For now, Facebook states that they will not be integrating their own messaging app with WhatsApp. However, it is believed that a takeover will commence within the next few years as Facebook continues to grow its own mobile platform.
So how much did Facebook spend on WhatsApp? Facebook will buy out the mobile app by taking the 183.9 million shares that is worth $12 billion. They will also sweeten the deal with $4 billion in cash and $3 billion in stock options for the WhatsApp team.
Facebook, who has struggled to compete in the mobile market with their lackluster Facebook App, has been pushing for a newer and better mobile platform. Their most recent app, Facebook Paper, was a major success for the company as it showed an entirely new interface. The social media giant is seeking to take over the
Why Facebook Bought WhatsApp for $19 Billion.