Facebook Pays $19B For WhatsApp
Facebook made a very bold, very expensive move this week when it struck a deal to acquire WhatsApp, a fast-growing developer of mobile messaging software, for $19 billion in cash and stock. The acquisition gives Facebook a deeper foothold in the mobile communications market and brings WhatsApp's 450 million active users into the Facebook universe (although many are probably already there). Still, it's a stunning amount of money to pay for a company with only 55 employees.
But the clear winners in this deal are WhatsApp's investors, including venture capital firm Sequoia Capital (it stands to gain $3.5 billion, according to reports), and WhatsApp co-founders Jan Koum and Brian Acton.