Save this content for laterSave this content on your device for later, even while offline Sign in with FacebookSign in with your Facebook account Close

Facebook buying messaging app WhatsApp for $19B

By: Associated Press
February 19, 2014 Updated: February 19, 2014 at 4:28 pm
0
photo - This Wednesday, Feb. 19, 2014 photo shows the WhatsApp and Facebook app icons on an iPhone in New York. On Wednesday the world's biggest social networking company, Facebook, announced it is buying mobile messaging service WhatsApp for up to $19 billion in cash and stock. (AP Photo/Patrick Sison)
This Wednesday, Feb. 19, 2014 photo shows the WhatsApp and Facebook app icons on an iPhone in New York. On Wednesday the world's biggest social networking company, Facebook, announced it is buying mobile messaging service WhatsApp for up to $19 billion in cash and stock. (AP Photo/Patrick Sison) 

NEW YORK — Facebook is buying mobile messaging service WhatsApp for up to $19 billion in cash and stock, by far the company's largest acquisition.

The world's biggest social networking company said Wednesday that it is paying $12 billion in Facebook stock and $4 billion in cash for WhatsApp. In addition, the app's founders and employees will be granted $3 billion in restricted stock that will vest over four years after the deal closes.

The deal translates to roughly 9 percent of Facebook's market value and is bigger than any acquisition made by Google, Apple or Microsoft.

Google's biggest deal, Motorola Mobility, stood at $12.5 billion, while Microsoft's largest was Skype at $8.5 billion. Apple, meanwhile, hasn't done a deal above $1 billion.

Facebook says it is keeping WhatsApp as a separate service, just as it did with Instagram, which it bought for about $715.3 million.

WhatsApp has more than 450 million monthly active users. In comparison, Twitter had 241 million users at the end of 2013.

Facebook CEO Mark Zuckerberg says WhatsApp is on path to reach a billion users.

"The services that reach that milestone are all incredibly valuable," Zuckerberg said.

Shares of Menlo Park, Calif.-based Facebook slid $1.12 to $66.94 in extended trading after the deal was announced.

__

AP Technology Writer Michael Liedtke contributed to this story from San Francisco.

Comment Policy
Register to the Colorado Springs Gazette
Register to the Colorado Springs Gazette
Subscribe to the Colorado Springs Gazette

It appears that you value local journalism. Thank you.

Subscribe today for unlimited digital access with 50% fewer ads for a faster browsing experience.

Already a Subscriber? LOGIN HERE

Subscribe to the Colorado Springs Gazette

It appears that you value local journalism. Thank you.

Subscribe today for unlimited digital access with 50% fewer ads for a faster browsing experience.

Subscribe to the Colorado Springs Gazette

Some news is free.
Exceptional journalism takes time, effort and your support.

Already a Subscriber? LOGIN HERE

articles remaining
×
Thank you for your interest in local journalism.
Gain unlimited access, 50% fewer ads and a faster browsing experience.