Whatsapp sold to Facebook 2019

If you assumed paying $1 billion for Instagram was insane, then this will certainly blow your freakin' mind: Facebook introduced late Wednesday that it has actually obtained messaging application WhatsApp for $19 billion. Yes, that's billion, with a "b." We'll offer you a moment to choose your jaw off the flooring.

Whatsapp Sold To Facebook



Facebook Buys Whatsapp


The WhatsApp offer entails some $4 billion in cash, and an additional $12 billion worth of Facebook stock up front-- that amounts to $16 billion, in case you don't have a calculator before you. WhatsApp's founders and staff members will additionally obtain one more $3 billion in Facebook shares over the following four years, bringing the complete price of the acquisition to $19 billion. The deal has been verified in records filed with the UNITED STATE Stocks as well as Exchange Commission.

Facebook has consented to pay WhatsApp $1 billion in cash money as well as to release $1 billion in Facebook supply as a break up cost, if the SEC does not accept the deal.

A quick look at the numbers reveals why Facebook invested billions on a 5-year-old message messaging choice. In a press release, Facebook disclosed that WhatsApp has some 450 million energetic month-to-month customers, 70 percent of whom utilize the messaging service daily. At that price, says Facebook, the variety of WhatsApp messages approaches the complete number of SMS sms message sent out across the whole world on an average day.

" WhatsApp gets on a path to connect 1 billion people. The services that get to that milestone are all exceptionally beneficial," Mark Zuckerberg, Facebook founder and also CEO, said in a declaration.

In a blog post, WhatsApp founder as well as CEO Jan Koum, that will certainly join Facebook's board of supervisors, said that the app "will stay independent as well as run individually" of Facebook, which "nothing" will certainly alter for users. Koum likewise said that the offer "will provide WhatsApp the versatility to expand as well as increase," while providing him, co-founder Brian Acton, and the rest of the What' sApp team "even more time to focus on developing a communications solution that's as quick, budget-friendly as well as personal as possible."

WhatsApp does not serve ads to users. Rather, the app bills a $1 annual cost after a year of complimentary solution. Koum claims the application will certainly stay ad-free under Facebook's umbrella.

Jim Goetz of Sequoia Capitol, the investment company that supplied WhatsApp with $8 million in financing-- the only financing the business got, according to Crunchbase-- looked for to explain the $19 billion amount brought by WhatsApp in a post. He associates the staggering procurement total up to the app's blowing up active userbase, the business's "epic" group of just 32 engineers, Koum's and Acton's devotion to "constructing a pure messaging experience," and the fact that WhatsApp invested precisely $0 on marketing.

" Those less knowledgeable about WhatsApp and also its remarkable item will marvel at just how a young business could be so valuable," composed Goetz. "Most of those people will certainly be in the UNITED STATE because there's no other home expanded innovation firm that's so widely liked abroad and so under valued in your home. ... Today PayPal and also YouTube are both household names around the world. Tomorrow the same will certainly be true for WhatsApp."

Soon after Facebook introduced the bargain, CEO Mark Zuckerberg claimed in an article on his Facebook Web page that WhatsApp will aid accomplish his company's "goal ... to make the world a lot more open as well as linked."

" WhatsApp will certainly enhance our existing conversation and messaging solutions to provide brand-new tools for our neighborhood," Zuckerberg created. "Facebook Carrier is widely used for chatting with your Facebook pals, and WhatsApp for communicating with all of your get in touches with and also small teams of people."

Zuckerberg added that the WhatsApp group "had every option worldwide, so I'm delighted that they chose to work with us." Facebook has actually allegedly been checking into buying WhatsApp because 2012, while Google was stated to have provided to get the company for $1 billion in April of in 2015-- a report that WhatsApp's head of service development Neeraj Aroratold later shot down. Not that $1 billion would certainly have sufficed, anyway.