Facebook Acquisition of WhatsApp Approved by EU
After eight months, Facebook has finally acquired the messaging app, WhatsApp. The deal has been closed with the SEC from America and the European Commission of the EU giving their approval to the acquisition. Many thought the deal would cost USD$19 billion but it turns out by the time the deal was closed, the price tag went up to a staggering USD$21.8 billion. Why? Well, this is because the Social Media giant stock price has been jacked up in the last few months.
WhatApp founder, Jan Koum joins the board with the acquisition being signed, sealed and delivered. Just like Mark Zurkerberg, Facebook’s CEO Koum will be paid only USD$1 a year. Sounds a bit of a bad deal doesn’t it? Not to worry, Koum has been given quite a big sum from Facebook shares to keep for himself. Facebook can now do whatever it likes to WhatsApp but the company did comment that it won’t be making any changes in the near future. The social media tycoon is looking to keep its acquisitions independent of each other since the companies were quite successful before they were bought over.
Facebook does think it can bring these acquisitions to the next level. What the company thinks ‘next level’ is, well, that’s something we’ll only know as time passes.
Source: The Verge