Facebook has announced its largest acquisition ever, saying it would pay at least $16 billion for WhatsApp, a text messaging application with 450 million users around the world who pay little or no money for it.
Facebook will pay $4 billion in cash and $12 billion worth of shares for WhatsApp. But the ultimate cost of the deal could rise to $19 billion, with WhatsApp employees and founders receiving an additional $3 billion in restricted stock units, which would vest over the next four years.
It is among the richest deals of all time for WhatsApp. With 55 employees, WhatsApp is commanding a price equivalent to $344 million an employee, or about $28 a user.
In that sense, Mr. Zuckerberg is following the successful strategy he used for Instagram, allowing the service to grow quickly before gradually adding in revenue — in Instagram’s case, from advertising.
The deal has been approved by the boards of both companies and is subject to regulatory approval. Facebook expects the deal to close later this year.
Full story: http://mashable.com/2014/02/19/facebook-whatsapp/