Featured Image for Facebook buys WhatsApp for AU$17.8 billion in shares and cash
Apps

Facebook buys WhatsApp for AU$17.8 billion in shares and cash

Facebook has announced to shareholders that it is to acquire the popular mobile messaging service WhatsApp, for a US$16 billion dollar purchase price (A$17.82 billion).

The price is split with $4 billion in cash, shares (around $12 billion) meaning WhatsApp shareholders and employees will ‘own’ around 7.9% of Facebook). There is an additional component of restricted shares ($3 billion – known as RSUs).

The move “accelerates Facebook’s ability to bring connectivity and utility to the world,” Facebook said in announcing the acquisition.

WhatsApp CEO and co-founder Jan Koum will also join Facebook’s Board of Directors.

WhatsApp currently employs 55 staff, giving a value of around $345M per employee. The service is expected to remain as is – independently, and the brand will not change.

WhatsApp has over 450 million people using the service every month, and 70% are active on any given day.

> Read Facebook’s announcement to shareholders here [PDF]

About the author

Tristan has a passion for tech, digital life, sport, and being told he looks better in person.

Videos from E MINOR TV

Techly is looking for an intern! We need a Sydney-based smartypants who’s keen to flex their writing muscles with fun and interesting copy. Reckon that’s you? Send your CV via this link and explain why you’re the perfect fit for Techly!

Leave a comment