The announcement by Facebook of its intention to purchase the commonly used and known cross platform messaging platform; Whatsapp, will see it spend a total of $16 billion. This amount will be divided into stock and cash whereby WhatsApp will receive $4 billion in cash and $12 billion in Facebook stock. As WhatsApp founder Jan Koum and a former employee of Yahoo joins Face book’s board of directors he will still remain at WhatsApp. $3 billion in restricted shares will be paid to WhatsApp 50No employees which will be equivalent to $380 million per person. There seems to be an ultimate agreement already between Facebook and WhatsApp and if Facebook the deal cancelled for whatever reason, it would have to pay WhatsApp a break up fee totaling to $2 billion and which should be split into cash and stock. Check Out: How to install WhatsApp for PC
WhatsApp has been a leading real-time messaging network and one of the largest messaging players in the world today. Millions of people have been able to connect with their family and friends and it is reported to have over 450Million users globally while gaining popularity by day. The biggest mission is to be able to connect 1billion people and people with various devices like Blackberries and iPhones are able to send photographs and messages for free at least for the first year. According to WhatsApp co-founder and CEO Jan Koum, this will be made possible by its simplicity and the powerful messaging capabilities. He added that the growth is strong and continuous. WhatsApp being such a strong and high quality product will continue to operate independently just like instragram does and from its headquarters in Mountain View, CA while maintaining its brand. As far as user perspective is concerned and even as WhatsApp continue to add one million users to every day service, nothing will change on it.
On the other hand Facebook also provided connectivity to family and friends. It is a reliable social network that will keep you updated on what’s happening around the world while you share and express your opinions on various issues of concern either positively or negatively. The whole mission that Facebook has adopted is to try and give people power and open them to the world. Its acquisition of WhatsApps gives it more grip in the market and stronger growth on mobile phones. From its expertise, resources and scale, Facebook promises to offer an environment for independent-minded entrepreneurs to build their companies on, set out the mileage for their direction and literally focus on where their growth. This will be made possible by the fact that the existing messenger App on Facebook will be retained and continue to operate on its own.
The acquiring of WhatsApp by Facebook
The two communication entities have been around long enough with each establishing itself with its users. They have both made life easy for everyone around the globe in terms of communication. They have transformed the internet business for the better. The CEO’s of the two companies expressed excitement and feelings of honor of being partners in business. Their greatest shared mission is now to deliver efficient and affordable core internet services. It’s only through this combination that can enhance accelerated growth and user engagement. They acknowledged that bringing their products together was the only way to bring more people around the world together. Apparently the two have known each other for some time now probably because they are in the same industry of communication. Both WhatsApp and Facebook had their advice from Morgan Stanley and Fenwick & West, LLP and Allen & Company LLC and Weil, Gotshal & Manges LLP respectively.
After the announcement of the merger, there were many people tweeting and commenting on the same and the most note able one was that the two Companies should build a common name and call the application WTFapp. As users, we can only hope that all will remain well as we continue to use the two messaging platforms.