Facebook Droppin’ Stacks $$$$$$
Posted by MattFromRI
Facebook has entered into an agreement to purchase WhatsApp, the massively popular messaging client, for $16 billion in cash and stock. A document filed with the SEC today confirms the huge purchase. As was the case with Instagram, the company says WhatsApp will continue to operate independently after the acquisition — separate from Facebook Messenger — but claims the deal “accelerates Facebook’s ability to bring connectivity and utility to the world.” Facebook is also throwing in an extra $3 billion in restricted stock units that will go to WhatsApp’s employees; those will vest over a period of four years after the acquisition is finalized. – The Verge
Why would Facebook spend 16 billion on a messaging app while they already have Facebook Messenger? The answer is simple…Users. WhatsApp has more than 450 million monthly users. If that doesn’t grab your attention check out their growth over its first 4 years as compared to other social media giants.
I think what is most interesting will be how Facebook plans integrates WhatsApp into its repertoire (Instagram, Facebook, and Facebook Messenger). That is, if they integrate it at all.
PS- 16 BILLION DOLLARS = Mucho $tacks