In a surprise move by Facebook, the company is planning to buy one of the most popular messaging app WhatsApp for 16 billion USD. The deal is said to help the growth and accelerated user engagement across both the companies. Facebook will be giving 4 billion USD in cash and the remaining 12 billion in stock.
The deal when finalized will give facebook access to the 450 million users of WhatsApp and this will only increase considering the one million new user sign ups it receives daily.`This will help WhatsApp to use Facebook’s huge resources including the infrastructure. According to the Zuckerburg, Facebook will not interfere with WhatsApp’s line of work and will allow it to keep operating with little changes to the current set up. The roadmap of WhatsApp along with it’s Mountain View headquarters will not be changing according to the reports.
[quote_box_center]”WhatsApp’s extremely high user engagement and rapid growth are driven by the simple, powerful and instantaneous messaging capabilities we provide,” Jan Koum, WhatsApp co-founder and CEO, said. “We’re excited and honored to partner with Mark and Facebook as we continue to bring our product to more people around the world.”[/quote_box_center]
Apart from the $16 billion Facebook is also planning to give $3 billion worth stock to the WhatsApp employees which in turn makes the deal $19 billion.
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