Facebook Buying WhatsApp

TechnoparkToday.com (Feb, 2014): Facebook – The No.1 social networking website buying WhatsApp – The leading mobile based messaging service company for $19 million.  The deal amount would be both in cash and stock. Probably this is the biggest acquisition bigger than any that Google, Microsoft or Apple have ever done!

It is reported that the payment split-up would be $12 billion in Facebook stock and $4 billion in cash for WhatsApp. Founders and 55 employees in WhatsApp will be granted restricted stock worth $3 billion.

Facebook likely prizes WhatsApp for its audience of teenagers and young adults who are increasingly using the service to engage in online conversations outside of Facebook, which has evolved into a more mainstream hangout inhabited by their parents, grandparents and even their bosses at work.

Among Silicon Valley internet startups, it’s notable that WhatsApp is actually profitable — but not through the normal monetizing avenues. WhatsApp doesn’t show ads and unlike other large messaging services it hasn’t built out a platform on which users can play games or purchase digital goods. Instead, it charges a $1 annual subscription after one free year.

WhatsApp has over 450 million monthly users, 70% of whom are active on a given day. They are adding more than 1 million new registered users per day. As part of the deal, its headquarters will remain in Mountain View, CA and WhatsApp’s team will not mix with those working on Facebook’s existing Messenger app.