Facebook is purchasing Whats app

Facebook is purchasing messaging giant WhatsApp for
$16 billion in cash and stock, according to a regulatory
filing . The deal is being cut for $12 billion in Facebook
shares, $4 billion in cash and an additional $3 billion in
RSUs for employee retention.

A termination fee is attached to the deal that would cost
Facebook $1 billion in cash and $1 billion in shares if
the deal fails to pass regulatory muster.

Facebook has posted on its blog , detailing the reasoning
behind the acquisition, as well. The post notes that
WhatsApp will continue to operate independently and
retain its brand. In addition, WhatsApp co-founder and
CEO Jan Koum will join Facebook’s board.

Facebook notes that WhatsApp has over 450 million
MAUs, with 70 percent of those active each day. In a
staggering comparison, Facebook also notes that the
messaging volume of WhatsApp approaches the SMS
volume of the entire global telecom industry — and that
it’s adding 1 million users a day.

“WhatsApp is on a path to connect 1 billion people. The
services that reach that milestone are all incredibly
valuable,” said Mark Zuckerberg, Facebook founder and
CEO in a statement.

“WhatsApp had every option in the world,” Zuckerberg
continued in a post to his Facebook page, “so I’m
thrilled that they chose to work with us. I’m looking
forward to what Facebook and WhatsApp can do
together, and to developing great new mobile services
that give people even more options for connecting. I’ve
also known Jan for a long time, and I know that we both
share the vision of making the world more open and
connected. I’m particularly happy that Jan has agreed to
join the Facebook board and partner with me to shape
Facebook’s future as well as WhatsApp’s.”