Facebook All Set To Acquire WhatsApp at $19 Billion

Continuing with its vision to conquer the rest of the world, read leisure, and the internet along with it, social networking giant Facebook is now all set to enthral WhatsApp Inc. and its popular instant messaging platform, WhatsApp for a whopping $ 19 billion deal.facebook-whatsapp Facebook’s co-founder and CEO, Mark Zuckerberg, in a post published to Facebook, said that, “I’m excited to announce that we’ve agreed to acquire WhatsApp and their entire team will be joining us at Facebook.” He also went on to say, “Our mission is to make the world more open and connected. We do this by building services that help people share any type of content, with any group of people they want. WhatsApp will help us do this by continuing to develop a service that people around the world love to use every day.”

Over the years, Facebook, conceived by Mark and his roommates with a name it got from the idiomatic title for the book given to students at the beginning of the academic year by some American university administrations to them know one another, during its inception as a startup network for friends from a dormitory at the Harvard University, has now grown into world’s largest social networking platform with registered users touching multi-billion numbers. And Mark Zuckerberg, one of the most successful entrepreneurs of our times. And so has the five year old WhatsApp. According to an estimate, WhatsApp has 450 million users active on a monthly basis, out of which 70 percent use the app every day. And yes, it’s growing awfully fast, adding up about a million users to its user base.

The WhatsApp deal, the second of its kind after Facebook’s Instagram acquisition, shall include 183,865,778 Facebook shares with a market value of $ 12 billion, some $ 4 billion in cash and a promised grant of 45,986,444 restricted stock units to WhatsApp founders and employees, amounting to an additional $ 3 billion which shall vent over four years from deal closing.

This mega price tag is just an indicator of the eagerness Facebook displayed in gobbling up one of its potential challengers – at least, in terms of usage metrics and target audience base. Though WhatsApp is largely focused on a friend to friend messaging network, its user base is somewhat greater than one third of that of Facebook. WhatsApp is especially popular among youngsters as it provides a more blinkered social experience. Acquisition of this network gives Facebook an important tool to maintain high user engagement rates. After the acquisition, the application akin to Instagram, shall function independently from its parent.

However, according to WhatsApp’s founder and CEO, who is all set to join Facebook’s board of directors, Jan Koum has stressed that their platform won’t become another channel for Facebook ads. “You can continue to use WhatsApp no matter where in the world you are, on what smartphone you are using. And you can still count on absolutely no ads interrupting your communication. There would have been no partnership between our two companies if we had to compromise on the core principles that will always define our company, our vision and our product” he said.

With this Facebook has just spread its “tentacles” across another popular social media platform, to slowly emerge as the driving force behind all social networking across the web. It was already so mainstream among netizens of all classes, and now with WhatsApp at its disposal, it can reach out even more. It just had made a dive, a little deeper. Now it’s the time’s tale to say what the giant does with its new found asset. Stay tuned to TechGipsy for more news and updates on technology.

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