Why WhatsApp Makes Perfect Sense for Facebook

Facebook to Buy Messaging App WhatsApp for $19 Billion:


Facebook Inc. (FB) is the world's largest social network which agreed to purchase mobile-messaging startup WhatsApp Inc. for as much as $19 billion in cash and stock is the biggest Internet achievement in more than a decade.

The accords include in stock it is $12 billion, in cash it is $4 billion whereas in restricted shares it is $3 billion, in yesterday's Facebook statement. It is the largest Internet deal as in 2001Time Warner's $124 billion merger with AOL according to data compile by Bloomberg. WhatsApp has more than 450 million members along with 1 million users being added daily.

About Facebook:

Facebook is a popular free social networking website which allows registered users to create profiles, upload photos and video also send messages and keep in touch with family, friends as well as with your colleagues. The site comprises 37 different languages includes public features like:

Marketplace: - It allows members to read post and respond to classified ads.
Groups: - It allows members who have interests to find each other and make interaction.
Events: - It allows members to publicize invite guests, an event and track who plans to attend.
Pages: - It allows members to promote and create a public page built about a specific topic.
Technology: - It allows members to see which contacts are online and chat.

Mission of Facebook is to provide people the power to share and make the world more open and connected. People use Facebook to stay connected with friends and family, to discover what's going on in the world, and to share and express what matters to them.

About WhatsApp:

WhatsApp is a personal real time messaging network which allows millions of people around the globe to stay connected with their friends and family.
Mark Zuckerberg, Facebook Chief Executive Officer who bought photo sharing service Instagram for about $700 million in 2012 which has been adding applications like messaging and news to court Smartphone and tablet users. WhatsApp that would be the company's biggest acquisition competes with apps from Twitter Inc. etc. the photo message startup which rebuffed a $3 billion Facebook bid last year.

WhatsApp has built a rapidly and leading growing real time mobile messaging service:

1. Over 450 million people using the service each month
2. 70 percent (%) of those people active on a given day
3. Messaging approaching the entire worldwide telecom SMS volume
4. Continued growth, presently adding in excess of 1 million new registered users per day.

Facebook and WhatsApp's shared mission bring more connectivity and utility to the world by delivering core internet services affordably and efficiently. The permutation will help accelerate growth moreover user engagement across both companies.

"WhatsApp is on a path to connect 1 billion people. The services that reach that milestone are all incredibly valuable," said Mark Zuckerberg, Facebook founder and CEO. "I've known Jan for a long time and I'm excited to partner with him and his team to make the world more open and connected."

Jan Koum, WhatsApp co-founder and CEO, said, "WhatsApp's extremely high user engagement and rapid growth are driven by the simple, powerful and instantaneous messaging capabilities we provide. We're excited and honored to partner with Mark and Facebook as we continue to bring our product to more people around the world."

In the event of termination of the Merger Agreement under certain circumstances principally related to a failure to obtain required regulatory approvals, the Merger Agreement provides for Facebook to pay WhatsApp a fee of $1 billion in cash and to issue to WhatsApp a number of shares of Facebook's Class A common stock equal to $1 billion based on the average closing price of the ten trading days preceding such termination date.

Why WhatsApp Makes Perfect Sense for Facebook:

We know, Facebook had been trying to buy WhatsApp for a long time as the rumors that had been there since 2012. More newly it was rumored that Facebook was trying to buy Snap Chat, another messaging app which has been slowly gaining popularity. Where WhatsApp's growth is concerned, the numbers make a lot of sense. It has more than 450 million people which are using the service each month and they are growing. According to Facebook 70 % of these people are active on the app on a given day, which shows pretty high user engagement.

Why Facebook is buying WhatsApp for a whopping $19bn:

Facebook is betting enormous on mobile with eye popping cash and stock deal worth-up to $19 billion for Internet Age Smartphone messaging service WhatsApp.
The surprise, mega deal announced on Wednesday bolsters the world's biggest social network that has more than 1.2 billion members along with 450 million strong WhatsApp which will be operated independently with its own board.

It s perfect for Facebook founder Mark Zucker berg's which focus at the center of lifestyles in billions of people around the world share anything they wish over the internet using Smartphone's or tablets. It is Facebook's biggest acquisition and comes less than two years after the California-based internet star raised $16 billion in the richest tech sector public stock offering.

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