Facebook has acquired the famous cross platform messaging service WhatsApp for huge sum of $16 billion. The deal will include $12billion worth shares of Facebook and $4billion in cash.
Facebook says just like Instagram, which it purchased for $1billion, Whatsapp will also operate independently. Whatsapp has built a leading and rapidly growing real-time mobile messaging service, with Over 450 million people using the service each month; 70% of those people active on a given day. Whatsapp accounts for more users than the Facebook messenger app. So it’s a good and obvious buy for Facebook which is losing its user base to the messaging services like Whatsapp, Viber quite rapidly.
“WhatsApp is on a path to connect 1 billion people. The services that reach that milestone are all incredibly valuable,” said Mark Zuckerberg, Facebook founder and CEO. “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.”
After the buyout, Whatsapp co-founder and CEO will join Facebook board of directors.
Jan Koum, WhatsApp co-founder and CEO, said, “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.”