Facebook buys WhatsApp for $16 billion, suddenly Instagram's $1b acquisition looks like a bargain

[Jos]

Facebook has agreed to buy leading instant messaging platform WhatsApp for a whopping $16 billion. The company made the surprise announcement in a blog post just minutes ago, detailing its reasoning for the deal as well as how it plans to go about the purchase. In short, Zuckerberg & co. are shelling out $4 billion in cash and approximately $12 billion worth of Facebook shares to snap up WhatsApp’s technology and user base.

The agreement also provides for an additional $3 billion in restricted stock units to be granted to WhatsApp’s founders and employees that will vest over four years subsequent to closing.

To better explain the deal Facebook highlighted some of WhatsApp’s key metrics: It’s estimated that over 450 million people are using WhatsApp worldwide today of which 70% are active, adding another million users per day and quickly approaching the entire volume of carrier-based SMS worldwide.

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

The deal is expected to close later this year and there’s a juicy $2 billion payout for WhatsApp’s founders ($1 billion in cash, $1 billion in Class A common stock) should things fall through due to failure of obtaining the required regulatory approvals or otherwise. WhatsApp’s core messaging product and Facebook’s existing Messenger app will continue to operate as standalone applications.

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https://www.techspot.com/news/55737-facebook-buys-whatsapp-for-16-billion-suddenly-instagrams-1b-acquisition-looks-like-a-bargain.html

 

[wastedkill]

What I would do with $16billion.... Is it just me or is facebook buying anything they can with money they will never have?

 

[Guest]

I think you might want to check your sources again. Other prominent websites are reporting that Facebook is buying WhatsApp for $19 billion, not $16 billion.

 

[Guest]

A huge number of people just had their privacy eroded even more. Facebook, Google, etc. are destroying privacy as we know it. This is why I'm such a strong advocate of privacy-based web services such as Ravetree, HushMail, DuckDuckGo, etc. You should definitely try out some of these sites if you haven't already. They're actually really good, and you don't have to worry about your personal information being data-mined.

 

[wastedkill]

A huge number of people just had their privacy eroded even more. Facebook, Google, etc. are destroying privacy as we know it. This is why I'm such a strong advocate of privacy-based web services such as Ravetree, HushMail, DuckDuckGo, etc. You should definitely try out some of these sites if you haven't already. They're actually really good, and you don't have to worry about your personal information being data-mined.

What you mean by the US government? I am pretty sure they have already had their data mined like google and microsoft had without even knowing.

Also this sale of whats app seems like a stupid thing to do I mean even IF you get 1billion active members its gonna take you 16years for it to pay for itself! its beyond stupid to pay that much for something soo small, its like mark just took some pills and went ape over the table and said $19bill $19bill I will buy it for $19bill even tho I know I am just washing money down the drain!

 

[Guest]

Maybe Marks butt buddy owns it.

 

[Guest]

Isn't messaging free? Why do people use Whatssapp

 

[wastedkill]

Isn't messaging free? Why do people use Whatssapp

Whatsapp is $1 per year span that out over 450mill people thats $450mill a year...

 

[davislane1]

I'm just going to short the NASDAQ. Forget taking too much heat on rallies, this buying up of small companies for billions of dollars wreaks of 1999-2001. Alas, I suppose that's what you get when you put kids with no business acumen in charge of billion dollar companies.

 

[TS-56336]

Why did they pay $16 billion for it? They could've just downloaded it for free.

 

[Guest]

I'm sure they'll get more than just the $1 per person a year. Knowing Facebook they'll probably sell your information/usage patterns to the highest bidder.

 

[Guest]

Although the price is cringe worthy, it seems like a smart move for Facebook. More and more teenagers are avoiding Facebook since their parents and grand parents are now on it. WhatsApp is how a lot of people are socializing now. Facebook needs to make strategic moves to stay relevant. They don't want to go the way of MySpace.

 

[davislane1]

Although the price is cringe worthy, it seems like a smart move for Facebook. More and more teenagers are avoiding Facebook since their parents and grand parents are now on it. WhatsApp is how a lot of people are socializing now. Facebook needs to make strategic moves to stay relevant. They don't want to go the way of MySpace.

People aren't leaving FB because their parents and grandparents are on it. They're leaving for one of two reasons:

1. They realize what a frivolous waste of time it is.

2. The novelty has finally worn off and they need a different social fix.

The exceptions to this rule are tier 1 hipsters, as they are the only group dweebish enough to ditch a service "'cause mommy uses it."

WhatsApp won't save them from their inevitable decline. My generation typically subscribes to the "if it works, make it better" philosophy of life. Consequently, things get broken. That's what Zuck & company did to FB and you can bet they'll do it to this, too.

 

[m4a4]

Isn't messaging free? Why do people use Whatssapp

Whatsapp is $1 per year span that out over 450mill people thats $450mill a year...

It says just users, not paid users. I know that it's a free download and, I think, a free year before they ask you to subscribe...

 

[cliffordcooley]

I know that it's a free download and, I think, a free year before they ask you to subscribe...

At which point you change monikers and get another free year.

 

[Guest]

Zuckerberg in PANIC mode:

'Mark, we think this company could take a few percent of our users in the next few years...'

'Throw the BANK at them !"

 

[Guest]

Sorry... Just walking past and looked in the window.

What's WhatsApp????

If it's an extra cost instant messaging subscription service that is the same as the one included in your Telco subscription service.

And he paid 19 Billion for it!

Hmmm...............(Tucks hands in pocket and keeps walking).

 

[Skidmarksdeluxe]

Why did they pay $16 billion for it? They could've just downloaded it for free.

Yeah then it would only have cost them buck a year thereafter. WhatsApp really saw them coming.

 

[Skidmarksdeluxe]

Next week we can all look forward to an ad cluttered WhatsApp app. I've been using WhatsApp for ~2 years now and they haven't asked me for a cent yet. I wonder how this will change under FB's greedy gaze...

 

[Guest]

Too much power in one organization should be laws to prevent this

 

[Kibaruk]

Am I the only one that uses facebook to actually comunicate instead of publishing every little nonsense I had for dinner last week??

The thing is, a persons privacy is as private as he means to have it. If you don't want anyone else to see your pics you just don't upload them, if you want to put that pic you had on a meeting with friends it's up to you.

Some users use it for the social-games-apps, some as a journal, some for marketting-commercial use, others like me to just comunicate.

You make facebook what you want it to be. To me this news is great, I hate it being on the computer and receiving a message through whatsapp to get the phone and start messaging back on the limited screen/keyboard, if this means I could reply to my whatsapp contacts through facebook's chat I would love it.

 

[Kibaruk]

Thats really bad news. Facebook just want to cut competition. They should just let this small start ups grow.

You call a 16 billion company a small start up?? Are you freaking kidding me?

They are not cutting competition, they are consolidating as a comunicational company.

 

[Guest]

"....and also in Fox News, Mark Zuckerberg pays $16 billion for a polished turd. Celebrates by sacrificing a lamb and snorting enough coke to briefly pretend he's not in the 10% most ugly percentile."

"Coming Up...are 90% of Facehook users actually bots? We reveal hArdCoRE eViDuNCe that Facehook has always been a CIA botnet built with assistance from secret members of Israeli Anonymous and administered from the Ecuadorian Embassy by Julian Assange's using his advanced ocular implants!!"

"Then..is Mark Suckerberg an ALIEN? Some people say it's a rumour started by Fox News, but we have more hArdCoRE eViDuNCe to suggest his rampant business stupidity can only have led to riches through the intervention of mYSteRiouS iNTerGaLaCtic faRcEs, and it's not Luke Skywalker we're talking about here! Tonight, we're revealing the Black Hole enigma, an evil force with a gravity so strong it will tear all victims' sense of self to small intangible, yet saleable pieces, while deceptively appearing as the singular glistening apotheosis of all freedom and expression."

 

[mojorisin23]

Whats app is BBM for everyone in the world. when I text friends in italy, in london, everyone uses whats app, not the antiquated SMS system that charges 50 cents a text.

great for sharing pics and stuff. I hate facebook but whats app works perfect. hopefully they dont mess with it or I/m out

 

[Kibaruk]

Mojo if we are lucky we will be able to send messages to whatsapp users from facebook!