Dev.SN

Facebook to Buy WhatsApp for 16 Billion

posted by Dopefish on Thursday February 20 2014, @05:00AM   
from the when-will-this-darn-bubble-pop-already? dept.

lubricus writes "Facebook announced plans to acquire WhatsApp for four billion cash, plus 12 billion in Facebook shares.

Additionally, WhatsApp employees and founders will receive three billion in restricted stock which will vest in four years. Facebook also agreed to a one billion dollar break up fee.

WhatsApp says they have message volume which approaches the global SMS volume, and hope to have one billion users. Even at those figures, Facebook is paying $16 per user.

I'm guessing WhatsApp will send Snapchat developers a cake."

• Re:Is it really that bad? Maybe (Score: 1) by monster on Thursday February 20 2014, @10:06AM

  by monster (1260) on Thursday February 20 2014, @10:06AM (#3438) Journal

  In terms of privacy, if you use and like whatsapp now you have already agreed to the incredible policy of having all your user contacts stored on the whatsapp server (therefore they know you address book) and to allow anyone to add you in to their phone book with out your permission (although you can block it).

  You mean, like when someone inputs a number in her addressbook, or looks up your number in the white pages? Outrageous!

  As for the buying price, I guess it is more likely to be related to their own stock: Valuation has been pretty unimpressive so far, and since a great chunk of the price is in Facebook stock ($12b) the operation can make it go up a bit and also help in giving investors a good impression now that the number of users has ceased to skyrocket.

  Parent