Facebook bought WhatsApp for a price of $19 billion on the 19th of February, 2014. According to businessinsider.com,
Facebook paid hugely with $12 billion in stock and $4 billion in cash,
and another $3 billion restricted stock for WhatsApp workers and
employers.
Facebook
is an online social network which allows users to create their personal
profile, add their details, add friends, exchange messages and upload
photos and videos. While WhatsApp is a mobile messaging service. It has
about 450 million users from all over the globe. CEO of Facebook, Mark
Zuckerberg says that an agreement has been reached by both parties and
the acquisition of WhatsApp will enable the entire team to join them at
facebook. He further stated that their mission is to make the world more
open and connected. Facebook felt Whatsapp is an extremely high quality
with a rapid growth and it is the only widely used app that has a
higher rate of engagement than Facebook. This is the biggest buy of
Facebook since the acquisition of Instagram with a $1 billion pay in
cash and stocks in April 2012.
I
think the acquisition of WhatsApp by Facebook is a good strategic plan
which could benefit the company and its users for better and effective
communication between people. Also this will help in expanding since
facebook growth as being slow while WhatsApp popularity is increasing
monthly by over a million people.
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