At the starting of year 2014, Facebook made a big decision for buying instant messaging service WhatsApp on wednesday. US based company Facebook is purchasing WhatsApp in $19 billion, in which $4 billion will be paid in cash, $12 billion in stocks and further $3 billion in RSUs for worker retention.
According to Facebook, the deal might be close this year, pending for regulatory approval.
The Giant deal shows that Silicon Valley based firm WhatsApp has made its place in every user’s phone and what mobile computing has become. This is the greatest deal ever. The past record for Facebook set when buying Instagram, and then he paid about $ 1 billion. Additionally buying WhatsApp – the biggest deal in the Internet market since 2001, when it was decleared that “the merger Century” at the $ 124 billion telecom giants Time Warner and AOL, indicates Bloomberg.
Finally, it is the largest in the history of successful start-up venture capital. According to Dow Jones VentureSource, the previous record was made nearly 20 years ago, when the US West Media bought Continental Cablevision for $ 11.8 billion. Facebook is clearly purchases one of its main rivals. Network will get 450 million reliable users and the amazing story of achievement, but for the stunning cost “- says the analyst Bloomberg Industries Paul Sweeney.
Read :WhatsApp for iPhone
WhatsApp is busiest app and over 450 million monthly users are active in the world, and 70 percent of them use this messaging app daily. WhatsApp is a leading mobile messaging service provider across all over the world.
“WhatsApp is a way to connect 1 billion people worldwide. The services that reach that milestone are all incredibly valuable,” Facebook CEO Mark Zuckerberg said in a speech.
The company has begun to move towards to the mobile market and generating gradually huge revenue on mobile. The deal will be a big uprising to increase Facebook revenue.
Facebook has already its own app that will continue to run along with WhatsApp and the company launched recently a messaging app ‘Paper’ too.
WhatsApp is an instant messaging application, which allows user to send text, photos, videos and other stuff through internet without paying any amount. It is similar to other internet application such as Gtalk, Skype and many other communication tools.
To make this successful deal, both companies get required regulatory approvals and Facebook has to pay whatsApp $1 billion in cash and also issue $1 billion in shares. If the deal does not close before Aug 16, then they have the authority to terminate the deal.
It’s all about WhatsApp
WhatsApp success story is really amazing. The corporation was established in 2009, a native of the Ukraine Kum and American Brian Acton. Unlike other messenger, WhatsApp does not cooperate with advertisers and allows you to exchange messages between phones in the presence of the internet for free in the first year, that is. E. User pays for the traffic at the rate of your mobile operator. From next year, the cost of using WhatsApp is 99 cents per year. Thus, it will be the first paid product portfolio in Facebook.
Less than five years, the company was able to bring a monthly audience of 450 million users, and every day it grows by 1 million. This is the fastest growth in the history of Internet companies. For comparison, the monthly audience of Twitter has 240 million users. WhatsApp handles about 50 million messages a day, though the company employs 100 people. A year ago, the income was $50 million. However, the company does not spend a dime on promotion: it has in the state has never been a press secretary or director of marketing.
WhatsApp’s Co founder and CEO Jan Koum will be engaged with Facebook’s board of directors.