WhatsApp’s employees will take home $3 billion in stock over four years
Facebook has entered into an agreement to purchase WhatsApp, the massively popular messaging client, for $16 billion in cash and stock. A document filed with the SEC today confirms the huge purchase. As was the case with Instagram, the company says WhatsApp will continue to operate independently after the acquisition — separate from Facebook Messenger — but claims the deal “accelerates Facebook’s ability to bring connectivity and utility to the world.” Facebook is also throwing in an extra $3 billion in restricted stock units that will go to WhatsApp’s employees; those will vest over a period of four years after the acquisition is finalized.
In a press release announcing the monumental buyout, CEO Mark Zuckerberg said, “WhatsApp is on a path to connect 1 billion people. The services that reach that milestone are all incredibly valuable.” He also shared news of the deal on his personal Facebook page, saying, “WhatsApp will complement our existing chat and messaging services to provide new tools for our community.” Over 450 million people use WhatsApp each month, according to statistics in the press release, with 70 percent of those users active on a given day. WhatsApp co-founder and CEO Jan Koum will join Facebook’s board of directors as part of the deal, but his team will remain stationed in Mountain View, California.
$16 billion for WhatsApp?!? daaaaaaaaaaamn.
“WhatsApp’s founders have pledged to keep the app ad- and gimmick-free” ….wonder how long they’ll be able to keep that promise. uh huh, yeahhhh.