Wednesday, 19 February 2014


 Facebook has concluded plans to buy over mobile text-messaging start-up, Whatsapp for a total of about $19 billion. WhatsApp's founders, Brian Acton and Jan Koum will first receive $4billion in cash, and $12 billion in Facebook shares. There is an additional $3 billion in "restricted stock units that will be granted to WhatsApp’s founders and employees vesting over four years." These guys have suddenly become billionaires. Many think this price is outrageously high for a mobile messaging startup like Whatsapp whch has only 55 employees, but the CEO of FACEBOOK, Mark Zuckerberg believes Whatsapp would worth over $450billion. He is excited about this and says: “WhatsApp is on a path to connect 1 billion people. The services that reach that milestone are all incredibly valuable, I’ve known Jan for a long time and I’m excited to partner with him and his team to make the world more open and connected.” And in response, Koum said
Whatsapp owners: Brian Acton and Jan Koum.
“WhatsApp’s extremely high user engagement and rapid growth are driven by the simple, powerful and instantaneous messaging capabilities we provide. We’re excited and honored to partner with Mark and Facebook as we continue to bring our product to more people around the world,”

Over 450 million people use Whatsapp monthly users,  and 70% of that figure are active on it everyday. It is also reported that over 1million people are joining Whatsapp everyday.

Now, Jan Koum, who owns 45% of Whatsapp "will join Facebook’s Board of Directors. It is agreed that "WhatsApp will continue to operate independently within Facebook." And in the event that the deal doesn't sail through, due to Regulatory approval, Facebook agrees to pay Whatsapp $1billion cash, and Class A common shares worth another $1billion. Wow! This deal is truly incredible!

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