Howdy WDT readers, Once again Facebook so called to be as the social networking giant is back in the news. This time they have come out for acquiring WhatsApp a messaging giant for an whooping 19 billion USD. According to the statement the deal happened to be cut for $12 billion in Facebook shares, $4 billion in the form of cash and $3 billion is for employee retention.
If we look at the history, Brian Acton, The Co-Founder of WhatsApp holds an interesting track record back in 2009 where he was turned down by both Facebook and Twitter for a job. But he seems to have not lose faith and kept innovating which made him make WhatsApp. And if we look at today Facebook has now paid $19 billion dollars for Brian’s WhatsApp.
Facebook in a note mentioned about acquiring WhatsApp and about the functioning of WhatsApp at Facebook HQ. And the note said this way.
“Facebook fosters an environment where independent-minded entrepreneurs can build companies, set their own direction and focus on growth while also benefiting from Facebook’s expertise, resources and scale. This approach is working well with Instagram, and WhatsApp will operate in this manner. WhatsApp’s brand will be maintained; its headquarters will remain in Mountain View, CA; Jan Koum will join Facebook’s Board of Directors; and WhatsApp’s core messaging product and Facebook’s existing Messenger app will continue to operate as standalone applications.”
So what’s the deal if Facebook acquires WhatsApp for $19 billion. A lot of people kept pondering over this and the reason is just simple. Facebook now connects more than a billion users and boasts about their 550 million active users a day. If you now look at WhatsApp in the same scenario, it has got 350 million active users in quick time and are expecting to grow more. So Mark would have thought about acquiring the brand would do good for the company and went for it. $19 billion isn’t a bad number. Some really feel that it’s way beyond expectations. But Mark might have his own plans to execute.
What’s there for WhatsApp in this deal? I would say, Jan Koum and Brian Acton have nailed it so perfectly. They have got a great value, will get to work with Facebook while Jan Koum makes his way to Facebook board. It was said that WhatsApp employs just 50 people with 32 Engineers and now they can think for more. Something that can really make WhatsApp a better messaging application. Hopefully even more advanced to the current one.
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