WhatsApp become the faster growing messaging application available for many platform like iOS, Android, BlackBerry, Symbian etc. Even very low priced phone those only have a decent net connectivity in that, WhatsApp available for it. Today Social Networking king Facebook agreement to acquire WhatsApp for $16 billion in stock & cash. This one is largest acquisition in history of Facebook acquisition. Facebook will pay $12 billion in stock & $4 billion in cash, totally $16 billion. Also Facebook will pay additional $3 billion in restricted stock units to WhatsApp founders & employees.
WhatsApp is in path to achieve 1 billion people, currently it has more than 450 million people who use WhatsApp daily. It founded in 2009 by former Yahoo engineer Jan Koum and Brian Acton. It’s a platform which slowly replacing SMS & Messaging service by Voice messages & Message for few rate data plan.
For first year WhatsApp doesn’t make money through its service, also its structure doesn’t have any type of ads. After first year they charges $0.99 for a year subscription. Its unknown that in future it will be monetized from advertising or not. As per Koum thinking, he doesn’t want to introduce advertising in WhatsApp. But Koum think, he have great monetization system for it than advertising.
If the deal will not go through then Facebook will pay a breakup fee of $1 billion to WhatsApp. Facebook acquired Instagram for $1 billion, where it only a breakup fee, quite high. After few meeting with Koum at Marks home e deal is finalized & Koum will join Facebook board of directors. Also WhatsApp will run independently as it handle Instagram.