If you thought this was another Twitter hoax, I’m afraid you are mistaken and the rumours are true. Facebook is indeed going to buy the popular messaging behemoth WhatsApp for $16 billion yes that’s right $16 billion that consists of $12B in Facebook shares and $4B in cash.
You can find all the information on the Facebook Blog whilst the fine print can be found at the regulatory filing. The people at Facebook are quick to stop anyone panicking by speaking about the Instagram business model to quell any speculation.
“Facebook fosters an environment where independent-minded entrepreneurs can build companies, set their own direction and focus on growth while also benefiting from Facebook’s expertise, resources and scale. This approach is working well with Instagram, and WhatsApp will operate in this manner. WhatsApp’s brand will be maintained; its headquarters will remain in Mountain View, CA; Jan Koum will join Facebook’s Board of Directors; and WhatsApp’s core messaging product and Facebook’s existing Messenger app will continue to operate as standalone applications.” (more…)