 |
The logo of
mobile app "WhatsApp" is displayed on a tablet on January 2,
2014 in
Paris (AFP/File, Lionel Bonaventure)
|
New York —
Facebook said Wednesday it was buying the fast-growing mobile messaging service
WhatsApp for more than $16 billion in cash and stock, expanding the global
footprint of the social networking giant.
The deal
bolsters the world's biggest social network by adding the 450 million users of
WhatsApp, which will be operated independently with its own board.
It is
Facebook's biggest acquisition and comes less than two years after Mark
Zuckerberg's firm raised $16 billion in the richest tech sector public stock
offering.
The
purchase includes $12 billion in Facebook shares and $4 billion cash. It calls
for an additional $3 billion in restricted stock units to be granted to
WhatsApp founders and employees that will vest over four years.
"The
acquisition supports Facebook and WhatsApp's shared mission to bring more
connectivity and utility to the world by delivering core Internet services
efficiently and affordably," said a Facebook statement.
Facebook
reportedly sought to acquire another hot messaging firm, Snapchat, for $3
billion last year.
"WhatsApp
is on a path to connect one billion people. The services that reach that
milestone are all incredibly valuable," said Zuckerberg, Facebook founder
and chief executive.
"I've
known (WhatsApp founder) Jan (Koum) for a long time and I'm excited to partner
with him and his team to make the world more open and connected."
WhatsApp is
a cross-platform mobile app which allows users to exchange messages without
having to pay telecom charges.
"Almost
five years ago we started WhatsApp with a simple mission: building a cool
product used globally by everybody. Nothing else mattered to us," Koum
said in a blog post.
"Today
we are announcing a partnership with Facebook that will allow us to continue on
that simple mission.
"Doing
this will give WhatsApp the flexibility to grow and expand, while giving me,
(co-founder) Brian (Acton), and the rest of our team more time to focus on
building a communications service that?s as fast, affordable and personal as
possible."
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