Internet titan Facebook continues to expand further its already formidable empire by adding Whatsapp to its growing list of acquisitions. The social media network magnate has finalized its purchase of top messaging service company Whatsapp in a blockbuster deal which ballooned to $21.8 billion from its original price of $19 billion as a result of Facebook’s robust and rising stock price last Friday.
Menlo Park, California-based Facebook stated that the new merger has appointed WhatsApp co-founder and CEO Jan Koum as one of the board of directors. The largest acquisition Apple has ever acquired on its history, the company’s purchase of WhatsApp is better than any other deals whipped up by technology-based companies such as Google, Microsoft and even Apple Inc.
The eye-popping value of the deal which was announced last February this year is truly mind-boggling, although the experts quipped that the merger between Facebook and WhatsApp is sensible.
Though the merger was approved in the United States, the European Commission (EC) took several months to approve it. EC eventually allowed the deal since it will not harm the competition in the messaging service segment after making a careful evaluation.
The growth of WhatsApp has been significant over the years especially in countries such as Brazil, Mexico, Russia and India. To date the messaging service has half-billion users whilst Facebook users are estimated at more than 1 billion.