Facebook Inc closed its accomplishment of famous messaging app WhatsApp on Monday. This acquisition enclosed with the final price tag growing from $3 billion to $22 billion. This acquisition is due to increase the value of Facebook’s stock in past few months. Whatsapp founder Jan Koum will acquire almost $2 billion in stock, investing over a four-year period to remain with the company as an inducement for him, corresponding to a restrictive filing on Monday.
The acquisition, which was announced by Facebook in February and recently got restrictive approval in Europe, emphasizes the sky-touching value of aggressive Internet start-ups, and the forwardness of accomplished players to disburse for them such as Facebook and Google Inc.
WhatsApp is among a new harvest of mobile messaging and social app, which has almost 600 million monthly users that have become common among youth and senior citizens as well. Snapchat provides users to swap photos that cannot show after a few seconds, which is privately owned mobile app, is producing money at a $10 billion evaluation, according to media reports.
Whatsapp got $4.59 billion cash and 178 million shares of its stock by Facebook as well as 46 millions of grants in limited stock units for their employees that will give for a four-year period. The deal alters to roughly $21.8 billion at Monday’s opening with share price of $77.17 by Facebook.
Koum, who will deliver as Whatsapp Chief Executive and become a Facebook director, will acquire a $1 annual salary, similar to Facebook Chief Executive Officer Mark Zuckerburg. Koum will get 24.9 million Facebook limited stock units, worth approximately $1.9 billion at Monday’s share price.
WhatsApp will go forward to be based at its elevation view, California, location that has more than 70 employees.
In addition to it, analysts estimated that WhatsApp makes money by charging a year subscription which costs $ 1, bringing in about $20 million in annual revenue.