Breaking News

Facebook Buying WhatsApp for $16 Billion
Download PDF
1 Star2 Stars3 Stars4 Stars5 Stars (No Ratings Yet)
Loading...

Facebook announced on Wednesday that it is purchasing the instant messaging company WhatsApp for an estimated $16 billion. WhatsApp’s service allows users to publish and exchange texts, images and videos over their smartphones and is very popular in hot markets like India, Brazil, South Africa and Indonesia.

In the current deal, Facebook has agreed to pay $4 billion in cash and $12 billion in Facebook shares. As a part of the deal WhatsApp employees and founders will receive restricted stock amounting to an additional $3 billion. Jan Koum, the founder of WhatsApp will join Facebook’s board of directors.

  
What
Where


Experts believe the acquisition of WhatsApp would greatly expand the global reach of Facebook into markets with high numbers of users. Currently, WhatsApp has a user base that exceeds 450 million.

Mark Zuckerberg, the founder and chief executive of Facebook said, “WhatsApp is on a path to connect 1 billion people … The services that reach that milestone are all incredibly valuable.”

The purchase of WhatsApp is in line with Facebook’s business statistics that saw greater revenue last year from outside the United States than from the domestic US market. Most of the international revenue came from Western Europe, Brazil, Australia and Canada.

Get JD Journal in Your Mail

Subscribe to our FREE daily news alerts and get the latest updates on the most happening events in the legal, business, and celebrity world. You also get your daily dose of humor and entertainment!!




For the first time Facebook had found the US market contributing 46 percent of the company’s revenue compared to 51 percent from other international markets – and the company realigned its strategies. It explained the change as “due to a faster growth rate of international users and to the expansion of international sales offices and payment methods” in its 2012 annual filing.

As a result, rather than trying to outcompete other complementary players in the international market – a strategy where ROI remains a gamble – Facebook is set to expand through acquisition, as it did in the case of Instagram.



Facebook’s own instant messaging service, Facebook Messenger is popular in the U.S., but in other markets, it lags behind services like WhatsApp. In Japan, an app called the Line is most popular, while in China, the most popular IM app is WeChat.



 

RELEVANT JOBS

ASSOCIATE ATTORNEY - Infrastructure, Major Projects, Public-Private Partnerships and Alternative Del

USA-NY-New York City

ASSOCIATE ATTORNEY Infrastructure, Major Projects, Public-Private Partnerships and Alternative De...

Apply now

Civil Litigation Associate

USA-NY-New York City

The Janey Law Firm LLP serves as of-counsel to Robert C. Gottlieb & Associates PLLC, a 38-year-old l...

Apply now

Lawyer / Attorney

USA-LA-New Orleans

Transcendent Law Group is looking for a attorney. The firm needs someone who has trial and litigatio...

Apply now

Probate & Estate Paralegal

USA-FL-Tampa

Probate and Estate Paralegal Job Description Established Tampa law firm seeks a full time Prob...

Apply now

BCG FEATURED JOB

Locations:

Keyword:



Search Now

BCG Attorney Search In-House Counsel

USA-CA-Los Angeles

BCG Attorney Search In-House Counsel We are a Legal Employment Company located in California with o...

Apply Now

FDA Regulatory Attorney

USA-MA-Boston

Boston office of a BCG Attorney Search Top Ranked Law Firm seeks FDA regulatory attorney with 3-4 ye...

Apply Now

Foreclosure/Bankruptcy Associate Attorney

USA-CA-Temecula

Temecula office of our client seeks associate attorney with preferably 2 years of experience working...

Apply Now

SEARCH IN ARCHIVE

To Top