Yes, you read that right. Facebook entered an agreement to buy the popular Messaging app according to an SEC filing that confirmed the heavy purchase.
Facebook says that WhatsApp will continue operating as an Independent company just like Instagram did after it was bought. Facebook emphasizes it will not be part of Facebook Messenger.
Besides the $16 billion, Facebook will offer an extra $3 billion in restricted stock units that will go to WhatsApp’s founders and employees that will vest over four years subsequent to closing. This bring the total to $19 billion.
“WhatsApp is on a path to connect 1 billion people – Mark Zuckerberg
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.”
The WhatsApp founder Jan Koum, had this to say, “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.”
WhatsApp will maintain its brand name, headquarters in Mountain View, CA and Jan Koum will be joing Zuck on the Board of Directors of Facebook.
WhatsApp and Facebook Messenger will continue to operate as totally separate Applications just like Instagram.
Facebook might have splashed a huge amount of money but this will give Facebook a wider audience considering WhatsApp had about 450 million users.
Oh wait Instagram got Ads last year lets pray WhatsApp doesn’t, I mean Facebook and Ads are a budding couple.