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Friday, February 21, 2014

Facebook to buy WhatsApp For $19 Bn

Facebook to buy WhatsApp For $19 Bn

FACEBOOK will acquire popular mobile messaging service WhatsApp for a whopping USD 19 billion in a cash and stock deal, bolstering the social networking giant's presence in mobile communications through its largest-ever acquisition.
The hefty transaction - that includes USD 12 billion worth of Facebook shares. USD 4 billion in cash and USD 3 billion in restricted stock units -will boost the world's biggest social network by adding the 450 million users of WhatsApp. including a significant number of youth.
Facebook will have to shell out USD2biIlion(over Rs 12,500 crore) if its acquisition of the instant messaging service Whatsapp fails to get necessary approvals. "In the event of termination of the merger agreement under certain circumstances principally related to a failure to obtain required regulatory approvals, the merger agreement provides for Facebook to pay WhatsApp a fee of USD I bn in cash," Facebook said.
The Menlo Park-headquartered firm will also issueanumberof shares of its Class A common stock equal to USD I billion to WhatsApp. it added. "The acquisition supports Facebook and WhatsApp's snared mission to bring more connectivity and utility to the world by delivering core Internet services efficiently and affordably." Facebook said.
The Mark Zuckerberg-led firm. that raised USD 16 billion in the richest tech sector public stock offering in 2012. said its biggest acquisition so far will not impact WhaisApp's brand, which will be maintained and the company's headquarters will remain in California's Mountain View.
"WhatsApp is on a path to connect one billion people," Zuckcrberg said. "I've known tWhatsApp founder. CEO) Jan (Koum) for a long time and I'm excited to partner with him and his team to make the world more open and connected." Koum will join Facebook Board of Directors under the agreement, that will grant WhaisApp's founders and employees restricted stock units to vest over four years following die closing of the deal. WhaisApp's core messaging product and Facebook's existing messenger app will continue to operate as standalone applications.

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