Facebook pays $19bn for popular messaging app
Mark Zuckerberg, founder and creator of Facebook, has recently bought the very popular messaging app WhatsApp for a staggering $19bn (£11.4bn). This breaks down to $4bn in cash, $12bn in Facebook shares and a further $3bn in stock for all WhatsApp’s founders and employees.
After years of working at Yahoo, founders of WhatsApp Jan Koum and Brian Acton applied for a job at Facebook. They were rejected. This gave them the incentive to set up their own business. WhatsApp has more than 450 million monthly users with 70% of these being active daily. They hit this number of users much quicker than Facebook. The pair have now become billionaires over night, it really was an offer they just couldn’t refuse.
Facebook’s intended plan with the takeover is to accelerate growth of the app. Mark Zuckerberg thinks that it won’t be long till it hits 1 billion users. He also says that he won’t be introducing adverts to the app but will this last?