February 19, 2014 – Facebook has announced a deal to purchase WhatsApp, the popular mobile messaging app, for a staggering $16 billion in cash and stock. This will be Facebook’s largest acquisition to date and makes the $8.5bn that Microsoft paid for Skype look like a bargain in comparison.
Mark Zuckerberg comments on the acquisition, “WhatsApp is on a path to connect one billion people. The services that reach that milestone are all incredibly valuable. I’ve 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.”
WhatsApp is a messaging app with incredibly high engagement – more than 70% of its 450 million monthly users are active daily. This acquisition will help Facebook grab a strong foothold in the mobile messaging space. Once acquired, Facebook intends to allow WhatsApp to run mostly independently, similar to an older acquisition, Instagram. WhatsApp’s CEO and Founder Jan Koum will join Facebook’s Board of Directors.
