Facebook closes on WhatsApp purchase; final price exceeds $21 billion
According to an SEC 8-K form filed by Facebook, the latter has finally closed on its purchase of messaging app, WhatsApp. The deal was originally agreed to in February, and the original $19 billion purchase price has since ballooned to a final tally of $21.8 billion. The higher acquisition price is due to the appreciation in Facebook's stock since the deal was announced.
Facebook announced on Monday that WhatsApp co-founder and CEO Jan Koum, will join Facebook's board of directors. Koum is looking at quite a pay day in four years. If he stays with the company for that period of time, he will receive shares currently worth $1.9 billion. But that is in lieu of a huge salary. Koum will be making just $1 a year at Facebook.
Facebook CEO Mark Zuckerberg says that Facebook will not make many changes to the messaging app in the short term, and will not add advertising on the service. WhatsApp is currently free for the first year with subscribers paying $1 a year thereafter. So far, Facebook has shown a willingness to let its recent acquisitions, such as Instagram, operate autonomously.
Facebook CEO Mark Zuckerberg says that Facebook will not make many changes to the messaging app in the short term, and will not add advertising on the service. WhatsApp is currently free for the first year with subscribers paying $1 a year thereafter. So far, Facebook has shown a willingness to let its recent acquisitions, such as Instagram, operate autonomously.
source: SEC via FierceWireless
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