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.