Menu
Facebook's purchase of WhatsApp a done deal at $22 billion

Facebook's purchase of WhatsApp a done deal at $22 billion

WhatsApp claims to have more than 500 million users worldwide

WhatsApp on iOS

WhatsApp on iOS

Facebook said Monday it had closed its acquisition of messaging app WhatsApp, giving the social network a massively popular service for mobile messaging.

The deal, when first announced earlier this year, was to cost Facebook $16 billion plus up to $3 billion in additional Facebook stock options to WhatsApp's founders. Now as of close the deal is worth around $21.8 billion total, based on the higher value of Facebook's stock.

Closure of the deal was announced in a filing with the U.S. Securities and Exchange Commission.

WhatsApp claims to have more than 500 million users worldwide, with fast growth in countries like Brazil, India, Mexico and Russia. Since the initial news of the acquisition, questions have been raised over the extent to which data would be shared between the two companies. WhatsApp says it does not collect names, addresses or email addresses, according to its privacy policy, but it does collect people's mobile phone numbers for the service to work.

Both Facebook and WhatsApp have said that the companies would continue to operate independently. Facebook has said that it would honor WhatsApp's privacy policy, but how exactly any data might be shared going forward is unclear.

The U.S. Federal Trade Commission, while it approved the deal this past April, urged both companies to proceed with caution in how they deal with users' data. If Facebook were to use any of WhatsApp's data in way that's inconsistent with WhatsApp's terms, Facebook would need users' permission first, the agency told both companies.

In a joint statement, both companies said Monday they were "looking forward to connecting even more people around the world, and continuing to create value for the people who use WhatsApp."

A Facebook spokesman did not immediately respond to comment further on the issue of data sharing.

Jan Koum, WhatsApp's founder and CEO, will sit on Facebook's board, the filing said. He will not receive any additional salary or serve on any committees of the board.

Zach Miners covers social networking, search and general technology news for IDG News Service. Follow Zach on Twitter at @zachminers. Zach's e-mail address is zach_miners@idg.com

Follow Us

Join the New Zealand Reseller News newsletter!

Error: Please check your email address.

Tags business issuesInternet-based applications and servicesWhatsAppmobilesocial mediainternetMergers and acquisitionsFacebook

Featured

Slideshows

Reseller News launches inaugural Hall of Fame lunch

Reseller News launches inaugural Hall of Fame lunch

Reseller News welcomed 2015 and 2016 inductees - Darryl Swann, Dave Rosenberg, Gary Bigwood, Keith Watson, Mike Hill and Scott Green - to the inaugural Reseller News Hall of Fame lunch, held at the French Cafe in Auckland. The inductees discussed how the channel can collectively work together to benefit New Zealand, the Kiwi skills shortage and the future of the industry. Photos by Maria Stefina.

Reseller News launches inaugural Hall of Fame lunch
Educating from the epicentre - Why distributors are the pulse checkers of the channel

Educating from the epicentre - Why distributors are the pulse checkers of the channel

​As the channel changes and industry voices deepen, the need for clarity and insight heightens. Market misconceptions talk of an “under pressure” distribution space, with competitors in that fateful “race for relevance” across New Zealand. Amidst the cliched assumptions however, distribution is once again showing its strength, as a force to be listened to, rather than questioned. Traditionally, the role was born out of a need for vendors and resellers to find one another, acting as a bridge between the testing lab and the marketplace. Yet despite new technologies and business approaches shaking the channel to its very core, distributors remain tied to the epicentre - providing the voice of reason amidst a seismic industry shift. In looking across both sides of the vendor and partner fences, the middle concept of the three-tier chain remains centrally placed to understand the metrics of two differing worlds, as the continual pulse checkers of the local channel. This exclusive Reseller News Roundtable, in association with Dicker Data and rhipe, examined the pivotal role of distribution in understanding the health of the channel, educating from the epicentre as the market transforms at a rapid rate.

Educating from the epicentre - Why distributors are the pulse checkers of the channel
Kiwi channel reunites as After Hours kicks off 2017

Kiwi channel reunites as After Hours kicks off 2017

After Hours made a welcome return to the channel social calendar last night, with a bumper crowd of distributors, vendors and resellers descending on The Jefferson in Auckland to kickstart 2017. Photos by Maria Stefina.

Kiwi channel reunites as After Hours kicks off 2017
Show Comments