WhatsApp acquired by Facebook for $16 billion but remains independent
Facebook today informed that it has reached an agreement to buy the popular messaging service WhatsApp for the whooping 16$ billion. The growing cross-platform messaging service has over 350 million active users with 70% of those using WhatsApp every day and 1 million new registrations daily. According to analyzers, WhatsApp message volume has increased to a level that it has overtaken traditional SMS.
Facebook will pay $16 billion including $4 billion in cash and $12 billion in Facebook shares. An additional $3 billion will be transferred to WhatsApp employees within the next 4 years. Facebook promised the acquisition won’t lead to major changes for users except more connectivity and utility, which would further accelerate the growth of both companies.
WhatsApp will remain independent and users will continue to enjoy the messaging service on their smartphones without ads, according to the press release. That’s interesting, especially in the light of Facebook’s main monetization method. At the same time, WhatsApp retains its $1 monthly subscription fee after the first year.
Facebook has currently around 556 million active users daily and with the WhatsApp acquisition, the company will try to bolster its international presence.