Yep, it’s true. For a whopping US$16 billion made up of US$12 billion in stock and US$4 billion in cash. If you include the additional US$3 billion in restricted stock units to WhatsApp’s founders and employees as part of the deal, the total acquisition price goes up to US$19 billion.
In the unlikely event that the deal does not go through, Facebook will pay a breakup fee of $1 billion to WhatsApp, which is more than the amount Facebook paid to acquire Instagram.
“WhatsApp is on a path to connect 1 billion people. The services that reach that milestone are all incredibly valuable,” Facebook CEO Mark Zuckerberg said in a statement. WhatsApp has over 450 million monthly users, 70% of whom are active on a given day. They are adding more than 1 million new registered users per day.
Facebook stock declined by more than 4.5% in after hours trading following the announcement.
Still, the Facebook Empire grows. They seem to be in the digital expansion mode like the Roman empire in their hey-days (offline mode).