Business, Investments, Mobile

Facebook closes WhatsApp Acquisition with a Price Tag of USD 22 Billion


Facebook has finally closed WhatsApp acquisition with an additional USD 3 billion to the initially stated USD 19 billion, and now has a price tag of USD 22 billion due to increased value of Facebook’s Stock in recent months. The company had announced the deal in February this year for a deal amount of USD 19 billion and now it has been closed.

Following this acquisition, WhatsApp will continue to work independently, and its CEO Jan Koum has joined as Facebook’s Director. As per NDTV Gadgets reports, Facebook paid USD 4.59 billion in cash and 178 million shares of its stock for Whatsapp, as well 46 million of grants in restricted stock units for Whats App employees that will vest over a four year period. At Monday’s opening Facebook share price of USD 77.17, the deal translates to roughly USD 21.8 billion.

See Also: After Google, WhatsApp’s 19 billion acquisition might come under India’s CCI probe

Last year social networking company, Facebook was eyeing another popular messaging app Snapchat but failed to acquire that. One month back, WhatsApp CEO, Jan Koum announced in a Twitter post that his mobile app had reached 600 million monthly active users. WhatsApp service was launched in 2009 by Jose Torres, Jan Koum and Brian Acton.

The other players in this category includes WeChat, which claims to have 438 million active users, Tango with 70 million active users, while Viber is close to 100 million active users.

Image Source: Talk Android

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