Latest news coming is that Facebook and WhatsApp have finalized a merger resulting in Facebook's acquisition of WhatsApp for $19Billion.
Facebook will be paying 4 Billion USD in Cash and shares worth 12 Billion USD to Whatsapp.
As perks, an additional amount of 3 Billion USD worth shares has been finalized for WhatsApp's Employees and Founders.
It is interesting to see this deal as WhatsApp initially refused to sell its rights to Facebook last year.
“Our mission is to make the world more open and connected. We do this by building services that help people share any type of content with any group of people they want. WhatsApp will help us do this by continuing to develop a service that people around the world love to use every day” – said Mark Zuckerberg while addressing the media and app users regarding this deal.
As a reaction of this WhatsApp users have gathered on Twitter and say that they will delete the app if this acquisition is enacted. WhatsApp was popular because of its policy of providing an Ad-free messaging experience. Though Facebook has its own propriety app for messaging on both Android and iOS platforms, it will be interesting to see what steps are taken by the company to keep the existing users from leaving the app.
Also, if this merger is not completed then WhatsApp will be paid $1 Billion in Cash and $1 Billion in share by Facebook.
Allen &co. were the advisers of Facebook and Morgan Stanley for Whatsapp.
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