Google originally offered $10 billion to acquire WhatsApp

By on February 20, 2014, 11:30 AM
google, facebook, zuckerberg, messaging, whatsapp, 10 billion

Facebook recently dropped a massive $16 billion to acquire popular messaging service WhatsApp, but based on recent reports it wasn't the first offer on the table. According to two of Fortune's anonymous sources, Google's offer of $10 billion was turned down in favor of Facebook's much higher valuation.

Other reports suggest that Google was indeed extremely interested in the messaging service, saying that the search giant offered a large chunk of cash to WhatsApp just so the company would tell Google when a third party became interested in an acquisition. The connection between this particular deal and Google's $10 billion offer isn't entirely clear, but we do know the company offered WhatsApp a figure in the millions just for a heads up on other outside interest. The reports go on to say that WhatsApp also declined this deal, meaning Facebook was likely in the dark about the $10 billion on the table from Google when it offered significantly more.

Zuckerberg highlighted WhatsApp's impressive 450 million regular user base while predicting the company is well on its way to connecting 1 billion people, in response to purchasing the massive cross platform messaging service. WhatsApp is a major player in many of the key emerging markets globally, likely something Zuckerberg and friends see as a major growth opportunity.

Facebook will hand over $4 billion in cash and $12 billion in shares to complete the deal. WhatsApp CEO Jan Koum was offered a seat on the board of directors from Facebook, an opportunity Google did not offer with its $10 billion deal, according to reports.




User Comments: 7

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1 person liked this | Guest said:

The $10 billion from Google is worth more than FB's offer. FB stock will be worth shit in the 4 years it will take to be vested.

1 person liked this | Kibaruk Kibaruk, TechSpot Paladin, said:

The $10 billion from Google is worth more than FB's offer. FB stock will be worth shit in the 4 years it will take to be vested.

Yes, your high education and knowledge in markets and probabilities are as correct as fox news.

p51d007 said:

I hope Whatsapp cashes out quickly. I just don't see how FB "makes" money

2 people like this | MilwaukeeMike said:

Yes, your high education and knowledge in markets and probabilities are as correct as fox news.

Wait... so you think he's wrong because you don't like Fox? Umm.. what?

I agree with the guest in that FB stock is a risky way to get paid. Sounds like FB bought them not only to have them, but also to keep them away from Google. I would assume stock is all they had to give.

3 people like this | Guest said:

I don't know what to say. I guess you are too young to have seen bubbles pop. P/E of facebook is almost 4x greater than Google. Google IP is gold while FB is just another website. FB $5 in four years.

Kibaruk Kibaruk, TechSpot Paladin, said:

I've been using facebook I think from 2008, if it is actually a bubble it has been an amazingly big one, doubt any of your forecasts of facebook closing will be anytime soon.

To the guy asking how facebook earns any money, it's through advertising and taxing micro transaction in apps.

JC713 JC713 said:

I dont get why Google was interested. Their services already have the features that Whatsapp offers.

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