We don`t see that coming, however it has a logic, WhatsApp is the application that every young people are using now instead of Facebook. The reason is their parents are on Facebook, and don`t want to be controlled by them, even if it is a messanging app.
Well now Facebook is acquiring WhatsApp. WhatsApp’s core messaging product and Facebook’s existing Messenger app will continue to operate as standalone applications.
The slides above show some of the reasons why Facebook is buying WhastApp.The Press Release below.
Webcast live with Mark Zuckerberg and slides now here: webCast
Press Release:
Facebook to Acquire WhatsApp
February 19, 2014
- Acquisition accelerates Facebook’s ability to bring connectivity and utility to the world
- Leading mobile messaging company will continue to operate independently and retain its brand
- WhatsApp co-founder and CEO Jan Koum to join Facebook Board of Directors
MENLO
PARK, CALIF. – February 19, 2014 – Facebook today announced that it has
reached a definitive agreement to acquire WhatsApp, a rapidly growing
cross-platform mobile messaging company, for a total of approximately
$16 billion, including $4 billion in cash and approximately $12 billion
worth of Facebook shares. The agreement also provides for an additional
$3 billion in restricted stock units to be granted to WhatsApp’s
founders and employees that will vest over four years subsequent to
closing.
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;
- Messaging volume approaching the entire global telecom SMS volume; and
- Continued strong growth, currently adding more than 1 million new registered users per day.
The
acquisition supports Facebook and WhatsApp's shared mission to bring
more connectivity and utility to the world by delivering core internet
services efficiently and affordably. The combination will help
accelerate growth and user engagement across both companies.
"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."
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.”
Facebook
fosters an environment where independent-minded entrepreneurs can build
companies, set their own direction and focus on growth while also
benefiting from Facebook’s expertise, resources and scale. This
approach is working well with Instagram, and WhatsApp will operate in
this manner. WhatsApp’s brand will be maintained; its headquarters will
remain in Mountain View, CA; Jan Koum will join Facebook’s Board of
Directors; and WhatsApp’s core messaging product and Facebook’s existing
Messenger app will continue to operate as standalone applications.
Upon
closing of the deal, all outstanding shares of WhatsApp capital stock
and options to purchase WhatsApp capital stock will be cancelled in
exchange for $4 billion in cash and 183,865,778 shares of Facebook Class
A common stock (worth $12 billion based on the average closing price of
the six trading days preceding February 18, 2014 of $65.2650 per
share). In addition, upon closing, Facebook will grant 45,966,444
restricted stock units to WhatsApp employees (worth $3 billion based on
the average closing price of the six trading days preceding February 18,
2014 of $65.2650 per share). As of February 17, 2014, Facebook had
2,551,654,996 Class A and B shares outstanding plus approximately 139
million dilutive securities primarily consisting of unvested RSUs. The
Class A common stock and RSUs issued to WhatsApp shareholders and
employees upon closing will represent 7.9% of Facebook shares based on
current shares and RSUs outstanding.
In the event of
termination of the Merger Agreement under certain circumstances
principally related to a failure to obtain required regulatory
approvals, the Merger Agreement provides for Facebook to pay WhatsApp a
fee of $1 billion in cash and to issue to WhatsApp a number of shares of
Facebook’s Class A common stock equal to $1 billion based on the
average closing price of the ten trading days preceding such termination
date.
Facebook was advised by Allen & Company LLC and Weil,
Gotshal & Manges LLP; and WhatsApp was advised by Morgan Stanley and
Fenwick & West, LLP.
Webcast and Conference Call Information
Facebook
will host a 30-minute conference call to discuss the acquisition at
3:00 pm PT / 6:00pm ET today. The dial-in number for the call is (866)
751-3284 (toll free) and (973) 935-8772 (international), conference ID:
2907041. The live webcast of the call can be accessed at the Facebook
Investor Relations website at investor.fb.com. Facebook uses the website http://investor.fb.com as a means of disclosing material non-public information and for complying with its disclosure obligations under Regulation FD.
Following
the call, a replay will be available at the same website. A telephonic
replay will be available for one week following the conference call at
(855) 859-2056 or (404) 537-3406, conference ID 2907041.
About Facebook
Facebook's
mission is to give people the power to share and make the world more
open and connected. People use Facebook to stay connected with friends
and family, to discover what's going on in the world, and to share and
express what matters to them.
About WhatsApp
WhatsApp
is a personal real-time messaging network allowing millions of people
around the world to stay connected with their friends and family.
Facebook Contacts
Investors:
Deborah Crawford
Press:
Tucker Bounds
WhatsApp Contact:
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