Friday, February 21, 2014

Facebook’s $16 Billion Deal for WhatsApp




BIG DEAL: FACEBOOK BUYS WHATSAPP FOR $16 BILLION  |  When Facebook offered to buy Snapchat last year for $3 billion, the messaging app turned Facebook down. So this time, Facebook made it harder for its target to say no. On Wednesday,Facebook announced it would acquire WhatsApp, a text messaging application with 450 million users, for at least $16 billion in cash and stock, its largest acquisition by far and one that represents a new height in the frenzy to acquire popular technology start-ups, David Gelles and Vindu Goel Write in Dealbook


Facebook will pay $4 billion in cash and $12 billion worth of Facebook stock, with an additional $3 billion in restricted stock units granted to WhatsApp employees and its founders, which would vest over the next four years and raise the cost of the deal to $19 billion.

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