Most of the experts thought that the acquisition of WhatsApp would have cost the social media giant a sum of $19 billion but it actually amounts to $22 billion. The acquisition has finally been closed and all the sum has been gracefully paid off by Facebook. The final price of the acquisition rose up by $3 billion because of the rise in stocks of Facebook recently.
The founder of WhatsApp, Jan Koum will get a hefty amount of $2 billion in terms of stock for spending time with the company. The news has been received through a regulatory filing as of Monday.
The acquisition had been announced by the social media giant in February, but the regulatory approval for the acquisition has been received in Europe recently.
WhatsApp holds a substantial number of users that account for 600 million at the moment. These days, social media and messaging apps are running high on the heads of youngsters. They have made communication easier. Apart from WhatsApp, the other messaging apps like Snapchat are also valued at a hefty $10 billion in the market.
In lieu of the acquisition, Facebook spent $4.59 billion in cash and gave away 178 million shares of stocks to WhatsApp. According to the reports, the deal had closed at $21.8 billion.
Jan Koum, the founder of WhatsApp will actually serve as the Chief Executive of WhatsApp. He is also given the post of being a Facebook director. He will receive 24.9 million stock units of Facebook which is equivalent to $1.9 billion in the market share price.
WhatsApp holds more than 70 employees in the company and they will remain intact after the acquisition. The operations of the messaging app will be confined to a Mountain View based location in California.
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