Facebook acquisition of WhatsApp: 12 facts on deal

Written by Agencies | San Francisco | Updated: Feb 20 2014, 21:03pm hrs
Facebook-WhatsappFacebook's WhatsApp acquisition at $19 billion is Mark Zuckerberg-led company's biggest deal.
Facebook Inc's acquisition of WhatsApp, the mobile messaging service, for $19 billion is by far the largest acquisition deal by a technology company. Here are the 12 facts about the Facebook-WhatsApp deal:

* Facebook is buying mobile messaging service WhatsApp for $19 billion in cash and stock.

* Facebook, world's biggest social networking company, is paying $12 billion in Facebook stock and $4 billion in cash for WhatsApp.

* Facebook's WhatsApp acquisition is Mark Zuckerberg-led company's biggest deal.

* Facebook-WhatsApp deal bigger than any that Google Inc, Microsoft Corp or Apple Inc have ever done.

* Facebook's WhatsApp deal translates to roughly nine per cent of Facebook's market value. In comparison, Google's biggest deal, Motorola Mobility, stood at $12.5 billion, while Microsoft's largest was Skype at $8.5 billion. Apple, meanwhile, has never done a deal above $1 billion.

* Facebook to keep WhatsApp as a separate service, just as it did with Instagram.

* WhatsApp is founded by Jan Koum, a Ukrainian immigrant who dropped out of college, and a Stanford alumnus, Brian Acton.

* WhatsApp is a Silicon Valley startup fairy tale, rocketing to 450 million users in five years and adding another million daily.

* While WhatsApp has more than 450 million monthly active users, Twitter, in comparison, had 241 million users at the end of 2013.

* Post deal with Facebook, WhatsApp founders and employees 55 in all will be granted restricted stock worth $3 billion that will vest over four years after the deal closes.

* With WhatsApp acquisition, the 10-year-old Facebook looks to attract its next billion users while keeping its existing 1.23 billion members, including teenagers, interested.

* Facebook-WhatsApp deal is expected to close later this year.