Facebook Acquires WhatsApp for $16 Billion in Cash and Stock

Looks like Facebook has just made a monster acquisition as a SEC regulatory filing has revealed it has intentions to acquire messaging app WhatsApp for $12 billion in Facebook shares, $4 billion in cash and $3 billion in restricted stock units.

Facebook today announced that it has reached a definitive agreement to acquire WhatsApp, a rapidly growing cross-platform mobile messaging company, for a total of approximately $16 billion, including $4 billion in cash and approximately $12 billion worth of Facebook shares. The agreement also provides for an additional $3 billion in restricted stock units to be granted to WhatsApp’s founders and employees that will vest over four years subsequent to closing. 

Facebook CEO Mark Zuckerberg said in a statement ”WhatsApp is on a path to connect 1 billion people. The services that reach that milestone are all incredibly valuable.”

WhatsApp founder Jan Koum took the company’s blog to say nothing will change with this acquisition and it will remain an independent entity:

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.

Koum also mentioned WhatsApp now has over 450 million monthly active users worldwide and over 320 million daily users. The app was released with a new iOS 7 design back in December.

Back in late 2012, rumours cited Facebook was in talks to acquire WhatsApp but the latter denied they were true. Looks like talks might have started way back when.

We’ve been using their app since day one and even helped troubleshoot an issue for Rogers users directly with Koum back in late 2010. Congrats to the entire WhatsApp team!

Click here to download WhatsApp for iOS.

Founder and Editor-in-Chief of iPhoneinCanada.ca. Follow me on Twitter, and @iPhoneinCanada, and on Google+.

  • einsteinbqat

    ugh!

  • http://www.ryantoyota.com/ Ryan

    This is ridiculous. How is a service like this worth $16 per user if they’re never going to run ads? I just don’t understand these acquisitions.

  • JMCD23

    I’m just guessing here, but they probably have some sort of plan for this up their sleeve. Whether it will be integrating the two messengers, linking them for better targeted advertising etc. Either way, I’m sure they’ll turn this great app into something less enjoyable for us and more profitable for them.

  • Tim

    I’m actually kind of encouraged by it. I’d like there to be a standardized, industry leading carrier agnsotic messaging app that everyone has so that I don’t have to use different services. I’d like text messaging (via the mobile provider) to die so they can’t act like it’s a feature anymore. If whatsapp and facebook messages integrate, that’s one less means of messaging that exists within the oversaturation of options that already exist. And I agree that the price is steep, but giving stock is not the same as cash. Paper isn’t worth anything until someone buys it, nor did it cost facebook the same billions to offer “billions”.

  • Shoodi

    They will take a good working app, and destroy it with slow speed, and lag especially on older devices like the iphone 4, just like how their crap Facebook app takes forever to load. Plus gaurenteed as with Instagram, sometime in the future they will introduce lame ads that will slow the app even further, and ruin its privacy. Yes right now the founders say no adds, but once the deal is closed facebook owns it, and can do as it pleases…

  • crosseyed_mofo

    unsure why anyone would use whatsapp when kik is around

  • Richard

    Some people do not like to make new accounts with a user name and password. Whatsapp is a very convenient app using their cellphone numbers as the username.