The Transform Technology Summits start October 13th with Low-Code/No Code: Enabling Enterprise Agility. Register now!
Mobile messaging service WhatsApp, which Facebook just acquired for more than $16 billion, will not shut down in the aftermath.
Like Instagram, it will live on in all its independent glory.
Facebook Messenger will also continue to run completely independently from WhatsApp.
“There’s no plan to change anything,” said a Facebook rep on background. “They’re going to keep their subscription-based model.”
From the press release:
The acquisition supports Facebook and WhatsApp’s shared mission to bring more connectivity and utility to the world by delivering core internet services efficiently and affordably. The combination will help accelerate growth and user engagement across both companies. …
Facebook fosters an environment where independent-minded entrepreneurs can build companies, set their own direction and focus on growth while also benefiting from Facebook’s expertise, resources and scale. This approach is working well with Instagram, and WhatsApp will operate in this manner. WhatsApp’s brand will be maintained; its headquarters will remain in Mountain View, CA; Jan Koum will join Facebook’s Board of Directors; and WhatsApp’s core messaging product and Facebook’s existing Messenger app will continue to operate as standalone applications.
The deal includes a $4 billion cash payment as well as approximately $12 billion worth of Facebook shares — a total of 183,865,778 shares of Facebook Class A common stock. The deal also has a $3 billion performance bonus.
WhatsApp is inching toward the billion-user mark, said Facebook CEO Mark Zuckerberg, and claims more than 450 million daily active users. The companies say WhatsApp’s messaging volume is nearly equal to “the entire global telecom SMS volume.”
VentureBeatVentureBeat's mission is to be a digital town square for technical decision-makers to gain knowledge about transformative technology and transact. Our site delivers essential information on data technologies and strategies to guide you as you lead your organizations. We invite you to become a member of our community, to access:
- up-to-date information on the subjects of interest to you
- our newsletters
- gated thought-leader content and discounted access to our prized events, such as Transform 2021: Learn More
- networking features, and more