Mark Zuckerberg

Company to continue to run independently, CEO to take seat on Facebook board of directors

Facebook has announced that it will buy cross-platform messaging service WhatsApp for a total of $16 billion, split between cash and stock. The deal was announced today by Facebook as a definitive agreement, with the messaging service receiving $4 billion in cash and aonther $12 billion in Facebook stock, with the option for another $3 billion in restricted stock units also available to be vested in four years. If for some reason the deal is cancelled due to regulatory issues, Facebook will pay a breakup fee of $2 billion split between cash and stock to Whatsapp.

WhatsApp, which has over 450 million monthly active users, is one of the biggest players in the messaging wars today. Facebook quotes some statistics, stating that WhatsApp is adding one million users to its service every day, with a total message volume on the network approaching that of global SMS traffic.

As was the case with Instagram, WhatsApp will continue to operate as a separate company and keep its branding in tact. Co-founder and CEO Jan Koum will remain at the company, but will also take a seat on the Facebook board of directors. In a post on its company blog, WhatsApp reiterates that nothing will change from a user perspective after the buyout, and the word "partnership" is being regularly thrown around from both companies.

Source: Facebook; WhatsApp

 

Reader comments

Facebook to acquire WhatsApp for $16 billion

99 Comments

Hmm. I get the feeling there will be quite a few people that won't like this. Just saying..

Posted via Android Central App

90% of the world uses Facebook and i'm sure the majority of WhatsApp users also have a FB account. I don't see any backlash going on with this acquisition.

Now if this is Google who is doing this. Everyone will be up in arms with torches.

90%? What math are you using???

1.23 billion monthly active users/7.145 billion people on the planet = 17.2% of the world.

Well I'm one of the few then that use What's App but doesn't have a facebook account. If I'm forced into Facebook, I'll just drop What's App.

Seems like a huge overpay, Nest was 19% of that price and Motorola was only 18%. Interesting that they could have bought ALL of Blackberry for BBM and carved out the junk (most of BB) and saved billions of dollars.

Noooo!! I've managed to stay away from FB this long to fall into their nets via a 3rd party deal! This is not fair...

Yep, hopefully this news will help me push my friends and family onto hangouts

Posted via Android Central App on nexus 7 (2nd gen)

Hope they can properly integrate WhatsApp without hurting It's strengths. Wonder if this is good news for Hangouts as there are a lot of people out there who hate and distrust anything Facebook (same holds true for Google so maybe another messaging app will grow, BBM?)

Posted via Android Central App

Google and Facebook merged?? Lol

But seriously, i'm ok with it. One less company to keep tabs on. (No pun intended)

via N7

Google doesn't sell your information and has been very consistent in how they treat customer info.
Facebook sells customer info and did so after swearing they would never do so.

Awful news, FB will most likely ruin it and litter it with ads. Great news for the whatsapp team, though I though they didn't want to sell out? I guess money talks :)

Boo hiss. Last thing I wanted to hear. Whatsapp was a great app until this..

Posted via my Motorola Startac

Nothing will change? They're not going to share their user data between WhatsApp and FB now? That sounds like a change to me.

Glad I'm not using WhatsApp.

The thing is they're going to keep as quiet about it as possible.

At least Google doesn't try to hide their data sharing and collecting business as much as I don't like it.

Posted via Android Central App

" nothing will change from a user perspective after the buyout,"
I hope not...I like Whatsapp as it is...without any strange integrations with other software like hangouts and sms.
I get the horrible feeling at some point you'll be forced into having a Facebook account before being able to use Whatsapp.
I can't stand Facebook and what it represents...each to their own and all that ?, lol.

No, Facebook bought Instagram and does not require you to have a Facebook account to use it. There is also no cross-platform advertising of one on the other whatsoever. It just made them work better together if you DO have both.

Why do you people get so up in arms when Facebook or Google buys something? Sheesh. Everything you guys think they're going to do that is so horrible never happens and the two companies involved in the buyouts usually just improve.

With Google, it's pure paranoia.
Facebook on the other hand previously had a privacy policy that said they would never sell or share your info. Then they changed it completely (and tried to do it quietly). Facebook also makes it very hard to adjust privacy settings and seems to change the method of adjusting them on a regular basis.

Hi Ryan,
If you read what I said I didn't say right now, I said " at some point".
You're entitled to not be concerned if you want, but I'm allowed to be concerned if I want...express you're opinion, but don't reply to my message by using terms like " you people" and "you guys".

I don't get the big deal. It's like People think what's app wasn't sharing info. I do agree they could have purchased all of blackberry for much cheaper. BBM is growing and what's app is not going to be as popular in my opinion.

Posted via Android Central App

As a user of both whatsapp is my prefered messaging app. Dont see a huge issue with this so long as my experience doesnt change.

Posted via Android Central App

I agree. The first time a AD pops up or any facefu£k sh1t appears on WhatsApp am uninstalling it. But I bet it will stay the same for a good while yet.

Posted via Android Central App

Actually, they couldn't have purchased BB. It's an open secret that the canadian government won't let BB be bought by a non-canadian buyer.
Whatsapp has about ten times as many users as BBM does just on Android.

I assume you live in America right with all the free texting plans around. That's not the case for most of the world. That's why WhatsApp is so big.

I've got an unlimited plan too (UK), but texting is still old school. WhatsApp is definitely better for the average person, myself included.

Posted via Android Central App

Millinials are running from Facebook to messaging programs like whatsapp. No surprise with this purchase though I do distrust Facebook and would rather whatsapp not be a part of the company.

Posted via Android Central App

Can Facebook fix their god awful app first? Instagram works great but the Facebook app is the worst.

Posted via Android Central App from my Moto X

Very true. What's with Messaging platforms and the hideous design? Whatsapp, BBM, Yahoo... yeesh. Hangouts is about as good as I've seen and even that is just kind of "meh".

I don't get it either.
I don't need bubbles or backgrounds or fancy colors. I want the messages to be the focus and clear to read. Surely someone with some design sense can come up with something better.

Posted via Android Central App using an LG G2.

I wouldn't give a dollar for Facebook or Whatsapp! All these billions thrown around in tech lately reminds me of the tech bubble a while back. Its all fun n games until that bubble bursts.

Posted via Android Central App on my white Nexus 4 with StraightTalk

And it is a bubble. Nobody should be thinking otherwise.

When the entire stock market starts to correct from the 5 year inflated boom we've seen nobody will want to hold tech stocks like Facebook. People will sell at any price and put there money in something else. Even Google could take a massive hit.

Posted via Android Central App

Um there has already been - Inq’s Cloud Touch (exclusively released in the UK as far as I know) has been considered one and the HTC First is officially one... Sorry if you're being sarcastic, I can't tell with just text and no obvious clues.

Posted via Android Central App on my Motorola XT890 RAZR i

Whatsapp needs to access your friends list, email addresses and photos. This app will post on your behalf and bombard you with adverts for all types of cr*p you don't want care about or need. You are unable to skip this step, please bend over and let Facebook f*ck you in the arse. Hit like to agree....

Posted via Android Central App

This is ridiculous. Facebook is becoming like Google, I'll be honest I'm not surprised but I'm not happy, I hope it doesn't go through. This is a perfect time to create a new messaging app.

Posted via Android Central App

There's many a messaging app out there including proper encrypted ones for the security conscious.

Posted via Android Central App