WhatsApp, the largest messaging service in the world is now change hands of ownership. The popular messaging platform was acquired by social media giants Facebook for a whopping $19 billion. Many consider this an outrageous amount to pay for a company that’s only five years old, however Facebook CEO Mark Zuckerberg thinks it’s worth every penny.
WhatsApp has been able to hold its weight against messaging heavyweights like Twitter, Google and Skype since the day they application was launched, Zuckerburg referred to the growth of the company in a conference call, “No one in the history of the world has done anything like that.”
WhatsApp is the most popular messaging app on smartphones with over 450 Million active users, while adding an additional million users each day. On the conference call Zuckerburg also stated that Facebook is not looking to drive revenue from WhatsApp in the near term, instead focusing on growth. He also stated that he doesn’t anticipate trying to aggressively grow WhatsApp’s revenue until the service reaches “billions” of users, and in our opinion that milestone might get turned over in a matter of months.
The deal that was made between Facebook Inc and WhatsApp, the total funds will be paid to previous owners of WhatsApp, $4 billion in cash and $12 billion in stock.
WhatsApp will operate as an autonomous unit within Facebook, just like Instagram, existing employees will remain onboard, plus to sweeten the deal even more, WhatsApp’s founders and staff will be eligible for for another $3 billion in stock grants to be paid out if they remain employed by Facebook for four years.