Facebook is expanding! Just yesterday we saw how it is planning to introduce friend-to-friend payments through its mobile app, Facebook Messenger. Today, we learn that Facebook finalizes purchase of WhatsApp for almost $22 billion!
Facebook Finalizes Purchase of WhatsApp
When Facebook announced back in February of 2014 that is was beginning the long and arduous purchase of WhatsApp, nobody thought it would take too long. But here we are, at the beginning of October when Facebook finalizes purchase of WhatsApp for the price of $21.8 billion (including cash, stock and restricted stock given to employees at WhatsApp).
At the beginning of the year the deal was struck between the two companies, but there was a different price that they agreed on: $19 billion. Part of the reason this happened was the fact that Facebook shares have been rising in price. Yesterday, CEO and co-founder of WhatsApp, Jan Koum, was welcomed to Facebook’s board.
This purchase is not only the largest acquisition made by Facebook, but it’s also bigger than any deals made by Apple, Microsoft and Google! It’s a sign that Facebook’s not only doing well, but it’s expanding at an extraordinary rate.
WhatsApp has more than 500 million users and it’s a huge hit in developing countries, such as India, Mexico, Brazil and Russia. The reason behind it is that it allows users to chat with their phone contacts over Internet. You can also send voice recordings and photos and even call overseas, through your Internet connection. WhatsApp is also ad free and free to join and use for the first year. After your first year, it costs $1 per year!
Facebook plans to keep Facebook Messenger and WhatsApp separate for the time being, but we’re guessing it’s planning a merge in the future.
What are your thoughts on the fact that Facebook finalizes purchase of WhatsApp? Drop us a line in the comment section below.