What happens when a social media giant acquires one of the biggest mobile communication apps? There are billion dollars cash and stock deals. The social media firm gets a stronghold in the mobile messaging market and it leads to a rush in the industry for buying the other smaller competitors.
This is what is happening in the case of Facebook and the biggest blockbuster in mobile messaging, Whatsapp. Just a week after the Asian e-commerce giant Rakuten acquired Viber for $900 million, Facebook has announced that it is buying Whatsapp for a whopping price of $19 billion.
The acquisition price includes $4 billion in cash, $3 billion of Restricted Stock Units and $12 billion worth of Facebook shares which will be paid over a period of 4 years. Under the terms of the acquisition, Whatsapp co-founder and CEO Jan Koum, will join Facebook Inc. as a Board of Director.
Whtasapp will continue to operate independently and autonomously even after the new deal. Irrespective of the agreement, there will be no hindrance in the growth and expansion of the mobile app. Users can just relax because their will be no change in the usage and the communication will not be interrupted by unnecessary ads, assured Koum in a blog post.
Facebook has been trying to ascend in the mobile messaging industry since the past few years. Its most recent attempt failed when SnapChat declined the company's offer for acquisition.Facebook Acquires Whatsapp for a Whopping $19 Billion!,