Top Story


Home >> Digital >> Article

Facebook set to acquire WhatsApp; Co-founder Jan Koum to join Facebook Board

Font Size   16
Facebook set to acquire WhatsApp; Co-founder Jan Koum to join Facebook Board

Facebook has announced that it has reached a definitive agreement to acquire mobile messaging company WhatsApp. The deal totals around $16 billion, with $4 billion in cash and approximately $12 billion in Facebook shares. The agreement also provides for an additional $3 billion in restricted stock units to be granted to WhatsApp’s founders and employees over four years subsequent to closing of the deal.

This is Facebook’s biggest acquisition so far and the first time that it has bought a ‘paid’ product (WhatsApp charges users for the service in some markets). More interestingly, Co-founder Jan Koum will be joining the Facebook Board of Directors, the company has announced.

WhatsApp boasts of over 450 million people using the service each month. It also has a 73 per cent daily active user base, which is much higher than that of Facebook. With the service adding 1 million registered users every day, it is expected to reach nearly 1 billion users in the next couple of years, giving Facebook a great avenue into the mobile space at a global level.

“Over the past couple of years, Facebook has been on a journey to become a truly mobile company,” said Facebook Founder Mark Zuckerberg in the conference call held to announce the acquisition. Facebook’s suite of mobile products, which includes Instagram, Facebook Messenger and, of course, Facebook itself, currently have 950 million mobile users per month, of which 550 million use them every day. He further said that WhatsApp will continue to run independently.

Though it was not directly mentioned whether WhatsApp will now become a completely paid service in all geographies, Zuckerberg did say that their dream was to provide “basic internet services at affordable prices”, which could mean that WhatsApp might turn into a completely paid model, especially since both co-founders of the company have always maintained a strict “No Advertising” policy.

Facebook had first approached to buy WhatsApp in 2012 and talks between the two companies have continued since then. Last year, there were reports of a potential $3 million interest in Snapchat, another mobile IM company, though a deal never materialised.

The acquisition is expected to close this year subject to regulatory approvals.

Innovation and connecting with customers in all ways possible is their mantra for successful marketing communication

Bixler revealed that the likes of The Ministry of Tourism, The Art of Living and The Indian Debating Union have partnered with the festival that will be showcasing the culture and diversity of India

In conversation with exchange4media, Vighnesh Shahane, CEO, IDBI Federal Life Insurance, spoke about his vision for this new marketing initiative, how the brand’s marketing efforts through sports have helped them and his business goals for 2018

This agency was born after national brands reportedly struggled to connect with the south Indian audiences

The agency has been awarded the reins of the account in the aftermath of a competitive multi-agency pitch.

In an effort to make Indian roads safer for women scooter riders, leading tyre manufacturer CEAT has introduced the CEAT Safety Grip - a perfect combination of innovation and functionality

Partners with Mumbai Juniorthon as ‘Safety Travel Partner’