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.



 

Interesting Legal Sites You May Like


BCG FEATURED JOB

Locations:

Keyword:



Search Now

Employment Litigation Attorney with 5+ years of experience

USA-CA-Los Angeles

Los Angeles office is seeking a labor and employment litigation attorney with 5+ years of experience...

Apply Now

Capital Markets Staff Attorney with 6+ years of experience

USA-NY-New York City

New York City office is seeking a capital markets staff attorney with 6+ years of experience. Candid...

Apply Now

Litigator with 5-10 years of general insurance defense experience

USA-FL-West Palm Beach

Boutique litigation firm is looking for an experienced litigator with 5-10 years of general insuranc...

Apply Now

Attorney with 1-5 years of family law experience

USA-CO-Castle Rock

Castle Rock office of our client seeks attorney with preferably 1-5 years of experience. The candida...

Apply Now

RELEVANT JOBS

Legal Assistant - Immediate Opening!

USA-PA-Scranton

Steppacher Law Offices, a Scranton-based workers comp, social security, and personal injury law offi...

Apply now

Associate Attorney

USA-CA-El Segundo

Small plaintiff’s employment litigation law firm in Los Angeles, California seeks highly motiv...

Apply now

Civil & Business Litigation / Transactional Attorney

USA-CA-Clovis

Law firm with primary emphasis in Business & Civil Litigation and transactional work, seeks confiden...

Apply now

CIVIL LITIGATION ATTORNEY - Employment

USA-CA-Fresno

Lang, Richert & Patch a Fresno area AV-rated law firm located in the highly desirable Fig Garden Fin...

Apply now

Most Popular

SEARCH IN ARCHIVE

To Top