The biggest social network in the world will acquire WhatsApp, a mobile messaging program that lets users exchange messages without having to pay for SMS messages, in exchange for a combination of cash and shares.
The co-founder and CEO of Facebook, Mark Zuckerberg, stated:
One billion people will be connected by WhatsApp. All of the services that accomplish that goal are immensely valuable.
As per the agreement, $4 billion in cash and around $12 billion in Facebook shares will be given to WhatsApp. Additionally, $3 billion in Facebook shares, which vest over the following four years, will be given to WhatsApp’s owners and staff.
It had been rumored that WhatsApp was of interest to both Google and Facebook. There were rumors that Google was considering buying the texting service. service for $1 billion.
WhatsApp stated in December of last year that there was no truth to reports of a Facebook acquisition.
The agreement could help Facebook in its fight against a future where more and more of its users access their accounts via mobile devices.
Two former Yahoo employees founded WhatsApp, which processed 54 billion messages last year. The app was first released in 2009.
The business explains what its mission is: to create a superior SMS substitute. because we think we are capable of it. Since everyone will have a smartphone very soon.
WhatsApp is the most globally diverse messaging service, with more than 600 million monthly active users from Europe to South America to Asia, so some kind of money transfer service for the world’s increasingly globalized workforce might be one way.
Facebook’s interest in the field of money transfer is well known. In April we reported that Facebook had been working since late 2013 on a European-wide money-transfer and storage service. Two months later it hired PayPal CEO David Marcus as head of the company’s “Messaging Products.” Then last week screenshots tweeted by a Stanford computer science student showed Facebook had already put elements of a payment’s infrastructure into place in Messenger for iOS, which had yet to be activated.
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