Facebook Is Buying Messaging App WhatsApp For Approximately $19 Billion In Cash And Stock

Facebook is again throwing money around to get a leg up on the competition. The social network is reportedly buying messaging app WhatsApp for a staggering $16 billion in cash and stock, plus an extra $3 billion or so in stock for WhatsApp employees. For those keeping track, that's 19 Instagrams.

The base $16 billion is split up as $12 billion worth of stock and $4 billion cash. The deal also includes an extra $3 billion in Facebook stock (45,966,444 restricted shares) to WhatsApp employees after the deal closes. The $3 billion number is based on the stock price right now – it could be more or less when the deal closes. Facebook has until August 19, 2014 to get things done on its end, or WhatsApp is free to pull out and gets $1 billion in cash and $1 billion in Facebook stock.

WhatsApp says it has about 400 million users, which Facebook would have access to. However, many of those users might already be on Facebook. This may also be a reaction to the recent purchase of Viber by Rakuten. WhatsApp will reportedly remain a separate product with its own app and no unnecessary Facebook integration or ads.

[Business Insider, SEC via Sarah Frier]

Ryan Whitwam

Ryan is a tech/science writer, skeptic, lover of all things electronic, and Android fan. In his spare time he reads golden-age sci-fi and sleeps, but rarely at the same time. His wife tolerates him as few would.

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source: androidpolice