Is WhatsApp really worth $19 Billion? Facebook thinks so.

Facebook has just bought the popular application, WhatsApp, a chat tool that allows friends to text and talk for free all over the world.  While it is not shocking news to hear that Facebook would go after the very popular app, what is startling is the amount of money they are willing to pay for it.  In exchange for this purchase, they are giving #12 billion in Facebook shares, $4 billion cash AND $3 billion in restricted stock units spread out over 4 years to the founders and employees of WhatsApp.   

What makes WhatsApp so desirable to Facebook that they are willing to dish out such a large sum to acquire it?  Facebook has already built themselves quite the empire, dominating over all other forms of social media.  WhatsApp is quite popular, counting over 450 million users, me being one of them.  I am curious to see what this union will produce. 

Facebook has simply states, “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.”  I wonder if they will find a way to morph the two apps into one, or what they will do in delivering this goal besides just sharing their reach in communication service.  

Zuckerberg states, “I have 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.” 

Jan Koum, founder of WhatsApp clearly has a lot to gain out of this, including the large amount of money he just came into.  “Doing this will give WhatsApp the flexibility to grow and expand, while giving me, Brian, and the rest of our team more time to focus on building a communications service that’s as fast, affordable and personal as possible.” 

I look forward to seeing the updates that are sure to come out of this new merger.  Don’t forget to stay charged while chatting it up on WhatsApp or Facebook-stalking your crush!  Get a Juno Power battery here or on Amazon.  We too like to produce quality at an affordable price.  

Ruza Radich
Ruza Radich