Facebook has agreed to acquire hugely popular messaging client, WhatsApp, for a whopping $16 billion. The messaging service will receive $4 billion in cash and other $12 billion in stock. Facebook will also pay $3 billion in restricted stock units which will be vested over in four years to WhatsApp’s employees.
WhatsApp however will continue to operate independently just as Instagram after its acquisition by Facebook. In a press release, CEO of Facebook Mark Zuckerberg stated:
WhatsApp is on a path to connect 1 billion people. The services that reach that milestone are all incredibly valuable. WhatsApp will complement our existing chat and messaging services to provide new tools for our community.
According to statistics, WhatsApp has over 450 million monthly active users and gaining 1 million users to its service everyday with messaging volume approaching the entire global telecom SMS volume.
Is WhatsApp really worth $16 billion in a market that has competitors like Viber, WeChat, BBM, and many more? Only time will tell…!