Monday,15 August 2022
Euro-Ibero-American space for dialogue on social, professional and academic innovation
ES
HomeInformationFacebook to buy WhatsApp
11,7 billion euros

Facebook to buy WhatsApp

Redacción
Facebook will buy fast-growing mobile-messaging startup WhatsApp for $19 billion (11,7 billion euros)) in cash and stock in a landmark deal that places the world´s largest social network closer to the heart of mobile communications and may bring younger users into the fold.

Facebook announced on Wednesday that it is to pay $12 billion (8.7 billion euros) in Facebook stock and $4 billion in cash for WhatsApp.The deal is a big bet for Facebook, which has until recently struggled to convince investors of its strategy for mobile.

WhatsApp has more than 400m users around the world and claims it is adding more than 1 million new registered users a day. It allows unlimited free text-messaging and picture sending between users and is among the world’s most downloaded mobile apps. Facebook’s successful bid comes after Google reportedly made a $1bn offer for the company last year.

Facebook offers its own, similar service in the form of Facebook Messenger, which links users to the social network´s broader online offering, but it hasn´t been as popular as competitors like WhatsApp and BlackBerry Messenger. By adding WhatsApp´s considerable user base to the mix, the social network scores a considerable coup.

"WhatsApp is on a path to connect 1 billion people. The services that reach that milestone are all incredibly valuable," Facebook CEO Mark Zuckerberg said in a canned statement. 

The merger must pass the usual regulatory hurdles before closing. If it fails to do so by August 19, 2014, the deal is off and Facebook must pay WhatsApp a fee of $1bn in cash and $1bn in Facebook stock.

12 key numbers

  1. $19bn Price being paid by Facebook
  2. 55 number of WhatsApp founders and employees
  3. 450m – number of people using the service each month
  4. 70% proportion of those users active on a given day
  5. 1m  new registered users per day
  6. 1bn WhatsApp’s target for number of users
  7. 19bn  messages sent via WhatsApp each day
  8. 34bn -messages received via WhatsApp each day
  9. $1.82  the amount by whicvh Facebook shares fell after the deal
  10. $2bn  the ‘break fee’ Facebook will pay to WhatsApp if the deal fails to go through 
  11. 2009 – year WhatsApp was founded
  12. $1bn  value of Facebook’s previous biggest deal, Instagram

Of interest

Related