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Facebook to buy messaging app WhatsApp for $19bn | Facebook to buy messaging app WhatsApp for $19bn |
(35 minutes later) | |
Facebook has said it will buy messaging app WhatsApp for $19bn (£11.4bn) - the social networking giant's biggest purchase to date. | |
WhatsApp is popular with people looking to avoid text messaging charges and has been cited as a rival to BlackBerry Messenger. | |
WhatsApp has over 450 million monthly users. | |
In a statement, Facebook founder Mark Zuckerberg described WhatsApp's services as "incredibly valuable". | In a statement, Facebook founder Mark Zuckerberg described WhatsApp's services as "incredibly valuable". |
WhatsApp allows users to send messages over internet connections, avoiding text messaging fees. The company claims it is currently registering one million new users a day. | |
Facebook will pay $4bn in cash and $12bn in stock for the firm. An extra $3bn in restricted stock will be given to WhatsApp's founders and employees. | |
WhatsApp founder Jan Koum will stay on and operate the firm independently. He will also become a member of Facebook's board of directors. | |
"We're excited and honoured to partner with Mark and Facebook as we continue to bring our product to more people around the world," Mr Koum said in a statement. | |
Shares in Facebook dropped 5% in after hours trading on news of the purchase. | |
Prior to this acquisition, Facebook's biggest buy had been Instagram for $1bn in 2012. | |
It had also reportedly offered $3bn to acquire photo messaging service Snapchat. |