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Facebook-WhatsApp deal closes, but now valued at $22 Billion

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Facebook has finally completed the acquisition of popular IM service, WhatsApp. But the deal, which was earlier inked for $19 Billion, will now be worth $22 Billion due to rise in Facebook’s stock prices.


WhatsApp founder Jan Koum will receive nearly $2 billion in stock, spanning over a four-year period, as an inducement for him to stay with the company, according to a regulatory filing on Monday.

The acquisition recently received regulatory approval from the EU, and had already received approval from US authorities.

Facebook acquired WhatsApp, earlier in February, in a battle with search giant Google. The deal was inked for a staggering $19 Billion, making it one of the biggest acquisitions in the history of Internet-based companies.


Facebook paid $4.59 billion in cash and 178 million shares of its stock for WhatsApp, as well 46 million of grants in restricted stock units for WhatsApp employees that will vest over a four year period. Facebook’s stock on Monday, valued at $77.17, raised the valuation of this deal to roughly $21.8 Billion.

WhatsApp founder Koum will serve as the WhatsApp chief executive, and will also become a Facebook Director. He will earn a $1 salary, similar to what Zuckerberg earns.

Editor-at-large and co-founder at The Tech Portal. He is a tech enthusiast with interests in new-age technology fields like Ai, Machine Learning, AR/VR, Outer Space and related stuff. Drop him a mail anytime, very reachable.

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