In what could be termed as one of the mammoth acquisitions of any field, Facebook announced gobbling up trendy mobile messaging application WhatsApp for 19$billion, or somewhere upwards 1,14,000 crore rupees!?
Jan Koum, WhatsApp co founder, Ukranian immigrant who used to live on government food coupons, will now join Facebook mgt. board.
Brian Acton, the other partner, was rejected a job by both Facebook and Twitter before WhatsApp was started in 2009. Now Facebook had to give him almost 10$ Billion to bring him to their board…Ouch!
The deal is equal to buying Blackberry three times. The biggest deal of Silicon valley before this was Symantec buying Veritas Software for 13.5$billion in 2004. Tumblr was bought by Yahoo for 1.1$ billion, Snapchat was valued at over 3$ billion earlier. this data will give you an idea of the actual size of the current deal.
WhatsApp has over 45 crore users, with about 10 lakh people joining it everyday! Facebook currently has over 120 crore users. As social media is steadily moving towards Mobile technology, the acquisition holds huge value for Facebook, according to CEO Mark Zuckerberg.
Announcing the acquisition, Zuckeberg said, “WhatsApp is on a path to connect 1 billion people. The services that reach that milestone are all incredibly valuable. I’ve known Jan for a long time and I’m excited to partner with him and his team to make the world more open and connected.”
Nothing is going to change for WhatsApp users though, as assured by Koum.