Business /
Facebook Buys WhatsApp For 19 Billion Dollars
Mark Zuckerberg, Facebook founder and CEO is determined to stay ahead of the user-technology curve, but will the cost be worth it?
Wednesday, Facebook announced its largest acquisition ever, $16 billion for WhatsApp, a rapidly growing cross-platform mobile text messaging application with 450 million users worldwide who pay little or no money for its use.
Meanwhile, Facebook will pay $4 billion in cash and $12 billion worth of shares for WhatsApp, the ultimate cost of the deal could likely rise to $19 billion, with WhatsApp employees and founders receiving an additional $3 billion in restricted stock units.
Claiming similar missions, to connect as many people as possible while also delivering core internet services efficiently and affordably, both Zuckerburg and Jan Koum, former Yahoo exec and WhatsApp co-founder/CEO (The other is Brian Acton) believe the acquisition will accelerate growth and user engagement across both companies.
WhatsApp’s founders Brian Acton, left, and Jan Koum at its offices in Mountain View, Calif. /Peter DaSilva for The New York Times & Facebook CEO Mark Zuckerberg /TechCrunch Disrupt
Apparently, Zuckerberg believes acquiring hot messaging technologies is also worth the hefty price tag, in order to gain traction with a younger generation of social network users.
Now a 10-year-old social network of 1.2 billion users globally, Facebook’s popularity has become commonplace that it risks losing the attention of users, but in in buying WhatsApp, which is growing faster Twitter rival, Facebook gains access to a huge customer base. WhatsApp’s messaging volume is fast approaching the volume of all text messages sent globally, a number estimated to be as high as seven trillion messages sent on WhatsApp a year.
"WhatsApp is on a path to connect 1 billion people. The services that reach that milestone are all incredibly valuable," said Zuckerberg. "I've known Jan for a long time and I'm excited to partner with him and his team to make the world more open and connected."
In return Koum stated that “WhatsApp's extremely high user engagement and rapid growth are driven by the simple, powerful and instantaneous messaging capabilities we provide. We're excited and honored to partner with Mark and Facebook as we continue to bring our product to more people around the world.”
Facebook’s company operating platform, allowing independent-minded entrepreneurs to build and run their own companies while benefiting from Facebook’s expertise, resources and scale means that WhatsApp will follow the lead of Instagram, acquired in 2012, and continue to operate under the WhatsApp’s brand from its original headquarters 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.
Featured Image:echzim.co.
COMMENTS
YOU MAY ALSO LIKE
-
Building Generational Wealth in North America: A Guide for South Asians to Guarantee Success!
-
Bollywood to Boardrooms: 5 Ways South Asians Are Redefining Business Trends In North America!
-
5 Ways South Asian Brands Can Boost Holiday Sales Online
-
Remembering Ratan Tata: The Visionary Who Helped Shape India's Path to Becoming a Global Superpower
-
From Content Creation To Healthcare, Here Are The AI Platforms Revolutionizing South Asia Industries
-
How Canada's LMIA Shakeup (Effective Sep 26, 2024) Impacts South Asians Hoping To Get A Canadian Work Visa
-
10 Side Hustle Ideas For Busy Desi Moms In North America
-
How South Asian Businesses In North America Are Adopting Sustainable & Eco-Friendly Practices (And You Can Too!)
-
Back-to-School Shopping Trends: Capitalizing On Opportunities for South Asian Brands
-
Exploring The Economic Power of India & Its Superpower Position in the World
-
Marketing Mastery: Celebrating Cultural Diversity For Business Success
-
From Roots to Riches: The Business Ascendancy of South Asians In North America
-
AI Trailblazers: South Asian Entrepreneurs Spearheading Technological Advancements
-
South Asian Heritage Month: How 6 Successful Businesswomen Broke Barriers
-
Honoring South Asian Heritage Month: Celebrating 6 Businessmen And Their Remarkable Achievements in Canada
-
2024 Essential Business Communication Trends for Leaders
-
Unlocking Success: The Power of Spiritual Quotient in the Corporate World
-
Did You Know Holi Could Spark Entrepreneurial Ventures?
-
Opening Ramadan's Business Potential to Canada's Growing Muslim Community
-
South Asian Call Centres & AI: A Match Made In Heaven?
-
Unemployed And Depressed: How To Keep Tabs On Your Mental Health When You Lose Your Job
-
Bangladeshi Garment Workers Clash With Police Over Wage Protest
-
5 Ways To Monetize Your Knowledge Online
-
10 Ways The "Human Interest" Approach Helps Battle Corporate Politics & Biases
-
Live Tinted Founder & CEO Deepica Mutyala Shares Why Being Real Is The Key To Her Business Wins
-
We Tell You Why Neerja Patel and Dr. Zabina Bhasin Are '100 Women To Know In America'
-
10 Female-Owned South Asian Brands You Need To Check Out
-
Pizza Pizza Marketing Director Amber Winters Explains How Inclusivity Grows Employee Confidence
-
Why Tina Singh’s Bold Helmets Is Next Level Inclusivity
-
How Sonya Gill's Ecommerce Store THE LNK Is Bringing South Asian Retailers To Your Doorstep
-
The 2 Titans: Dr. Ajay Virmani & Dr. Steve Gupta, Are Making Canadian Proud
-
The Key To This CEO’s Success? Embrace The Chaos
-
Dr. Rumeet Billan Incoming CEO Of Women Of Influence Wants You To Stop Using #GirlBoss
-
Has The Housing Bubble Burst? Here's What You Need To Know
-
From Law To Love: How Did Jasbina Ahluwalia Create One Of The OGs Of South Asian 1:1 Matchmaking Personalized Services?
-
Creators Of "Thirsty Suitors" Are Fixing The Lack Of South Asian Avatars In The Gaming World
-
The Economic Collapse Of Sri Lanka: Here’s What You Should Know
-
Why Reetu Gupta Newly-Appointed Chairwoman of The Gupta Group, Wants Women To Believe In Their Wins
-
Why Elon Musk's Twitter Grab Is Dangerous For Us Desis
-
South Asian Heritage Month 2022: 10 South Asians Shaking Up The Tech Space
-
Taking A Closer Look At Presenteeism — When You're At Work But Not Really There
-
Rohit Bhargava Dissects The Authentic Way We Can Expand Our Perspectives In His Latest Book "Beyond Diversity"
-
Our 2021 Roundup: How Two Sisters Used TikTok To Launch Glow Away SKIN During The Pandemic
-
Our 2021 Roundup: Speak Up! These Are The Reasons Women Need To Talk To Their Friends About Their Money
-
Holiday Gift Guide 2021: 6 Gifts For The Home Office
-
Key Tips To Help With Team Cohesion At The Workplace
-
Two Sisters Tell Us How They Went From Social To A Store With Little Sister Baking
-
Mindful Ways To Prepare Yourself For Your Move Back To The Office
-
Luxury Realtor Sahil Punni Of Homelife G1 Realty Tells You What To Expect In A Post-Pandemic Real Estate Market
-
The High Cost of Unwellness: Mental Health Issues In The Workplace Is Costing Us More Than You Think
-
Marketing Hall Of Fame Recipient Sharifa Khan Shares The 4 Biggest Misconceptions Companies Have When They Are Trying To Get Our Attention
-
Raj Baddhan Has Big Plans For The Airwaves As The Newly-Minted CEO Of Lyca Media
-
You Need To Be Here! The Open Chest Confidence Academy Breaks Registration Records With Raj Girn's First Free Masterclass
-
Capturing Your Midlife Magic: A Step-By-Step Process To Rediscovering Your True Calling
-
Find Out How TIDL Sport Convinced MMA Icon Conor McGregor To Believe In Their Brand
-
Dr. Amy Shah Tells Us Why Exhaustion Doesn't Have To Be Your New Normal In Her Latest Book "I'm So Effing Tired"
-
Masala Bhangra Rings In 20 Years & Keeps The World Moving During The Pandemic
-
SRC Partners Tells Us How They Are Bridging Cultural Gaps In The Entertainment Industry
-
The COVID-19 "Shecession" Can Be Devastating For Women’s Livelihood
-
Neetu Godara, Co-Founder Of SoCIAL LITE Vodka Talks About How Persistence Got Her A Winning Drink