Facebook to Buy WhatsApp for $16 Billion
Facebook has agreed to purchase WhatsApp, a maker of over-the-top messaging applications for smartphones. The deal is valued at about $16 billion, including $4 billion in cash and $12 billion in stock. The WhatsApp messaging service is available to the Android, BlackBerry, iOS, and Windows Phone platforms and lets users avoid texting fees by sending messages through data networks instead. Facebook said the acquisition will help it "accelerate growth and user engagement across both companies." WhatsApp counts about 450 million users, 70% of which are active each day. Facebook said that Facebook Messenger and WhatsApp will be operated separately.
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Ahead of the Bell: Facebook shares stumble
Analysts that follow the company had mixed feelings on the deal, which Sterne Agee called strategically sound. But Pacific Crest Securities said it would have preferred to see Facebook grow organically, or at least act sooner on such acquisitions to avoid the sticker shock.
WhatsApp is a global messaging service for smartphones. It allows users chat with their phone contacts, both one-on-one and in groups, and well the sending of texts, photos, videos and voice recordings.
Facebook said Wednesday that it's paying $12 billion in stock and $4 billion in cash for t...