Facebook, the largest social networking site in the world today, has agreed to pay $16 billion for WhatsApp. WhatsApp is easily the most favored mobile-messaging app and Facebook is the largest social networking site. No doubt, these are the two big players in the world of internet that are joining hands.
The acquisition of WhatsApp by Facebook makes it one of the most talked about deal and shows the passion when it comes to acquiring the popular and famous tech start-ups in the world.
The pay of $16 billion will mostly be in the form of Facebook shares. Out of this, $4 billion would be paid in cash, while the remaining amount will be in the form of Facebook shares. $3 billion will be in addition as restricted stock units, which will be arranged for the founders and employees of the mobile messaging app.
Mark Zuckerberg, who is the founder as well as the CEO of Facebook, said “WhatsApp is on a path to connect one billion people.” He further added that the services of the app are extremely valuable.
If there are more than a billion users with Facebook, WhatsApp is also getting extremely popular with 450 million odd monthly users. Nearly 70 per cent of these users are active on any single day.
In case the merger doesn’t take place, Facebook will pay $1 billion in cash to WhatsApp apart from $1 billion in Facebook shares.