Wednesday, February 19, 2014

Facebook is buying WhatsApp for $16 billion

Techcrunch reports that: "Facebook is purchasing messaging giant WhatsApp for $16B in cash and stock, according to a regulatory filing. The deal is being cut for $12B in Facebook shares, $4B in cash and an additional $3B in RSUs for employee retention.

A termination fee is attached to the deal that would cost Facebook $1B in cash and $1B in shares if the deal fails to pass regulatory muster. "

WhatsApp is fast-approaching the 1 billion user mark and rivals SMS as the preferred medium for text communication via mobile phones in many countries. We can expect a gradual but certain tie-up between Facebook Messenger and WhatsApp as a result of this deal.

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