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 newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags social mediamobileMergers and acquisitionsinternetbusiness issuesFacebookInternet-based applications and servicesWhatsApp

Featured

Slideshows

Reseller News launches alumnae breakfast for Women in ICT Awards

Reseller News launches alumnae breakfast for Women in ICT Awards

Reseller News hosted the first alumnae breakfast for the Women in ICT Awards in New Zealand, designed to showcase the leading female leaders in the industry. Held at The Cordis in Auckland, attendees came together to hear inspiring keynotes and panel discussions, alongside high-level networking among peers.

Reseller News launches alumnae breakfast for Women in ICT Awards
Reseller News Innovation Awards 2018: meet the top performing partners

Reseller News Innovation Awards 2018: meet the top performing partners

Reseller News honoured the industry’s finest on a standout evening for the New Zealand channel, recognising the achievements of established partners, emerging players and innovative start-ups, in front of over 460 technology leaders in Auckland.

Reseller News Innovation Awards 2018: meet the top performing partners
Show Comments