News Byte: Facebook Buys WhatsApp for $19 Billion

Share this article:
ComScore: Facebook ads work
Facebook spends big bucks on start-up

Facebook recently announced its acquisition of instant messaging start-up WhatsApp for $4 billion in cash and approximately $12 billion worth of Facebook shares. An additional $3 billion in restricted stock units to be granted to WhatsApp's founders and employees that will vest over four years after closing, bringing the total purchase prise to $19 billion. The surprising move is the most expensive acquisition for the company to date, drastically eclipsing the $1 billion Instagram purchase.

WhatsApp boasts 450 million monthly users, with 70% of those users active on a given day, according to a release. The release also notes that about 1 million users register with WhatsApp each day.

The purchase comes amid industry speculation that the social media giant is rapidly losing its younger audience to other services such as Snapchat. 

Alternatively, this acquisition is further evidence of Facebook prioritizing mobile. As of December 31, 2013, Facebook reached more than 945 million mobile monthly active users—a 39% increase over 2012, according to the company's Q4 2013 earnings report.

Share this article:

Follow us on Twitter @dmnews

Latest Jobs:

Featured Listings

MediaWhiz

MediaWhiz is an online performance marketing agency that helps clients acquire customers more ...

More in Social Media

Twitter's Ad Revenue Doubles in Q2

Twitter's Ad Revenue Doubles in Q2

But users increase just 24%, and marketers still await promised metrics that will indicate audience reach beyond Twitter's logged-in base.

Mobile Approaches Three Quarters of Facebook's Ad Revenue

Mobile Approaches Three Quarters of Facebook's Ad Revenue

The channel accounted for 62% of the social network's $2.7 billion ad revenue in Q2, a 21% increase from the same period last year.

Twittersphere Abuzz With Negativity Over Pinterest's New Brand Leader

Twittersphere Abuzz With Negativity Over Pinterest's New Brand ...

The general sentiment is that David Rubin's success with the Axe brand is unlikely to help him grow the social network's male audience.