Mark Zuckerberg to unite Facebook and WhatsApp
Recently Facebook has celebrated its 10th anniversary and some people are asking for whether Facebook is reaching its end?… The CEO and owner of Facebook seems like to be very caution about his product and to prove the gossips wrong, Facebook Inc has decided to include fast growing messaging app WhatsApp in their Panel to increase the productivity and life of Facebook. The idea is to catch the enthusiastic youth that is very close to the Mobile World as the statistics raveled that youth remain in touch with Smartphone devices throughout the day and WhatsApp is a good platform to bring crowd to Facebook.
The Deal includes a transaction of $19 billion and involves $4 billion in cash, $12 billion in stock and $3 billion in restricted stock. This calculation and valuation by Facebook stated that the Facebook Inc thinks that WhatsApp is worth over $42 per user. WhatsApp is a joint venture of Brain Acton with 20% stake and Jan Koum with 45% stake while their App brought 450 million users in a period of 5 years and thousands are adding on daily basis.
However both Zuckerberg and Koum at conference didn’t clear the way how company will deal with $1 annual fee (exemption for first year). Instead Zuckerberg said that their focus is on growth mainly.
Both said that WhatsApp will continue as a separate product and will operate as a separate entity with no advertising policy with WhatsApp.