How much was WhatsApp acquired for - briefly?
Facebook acquired WhatsApp in 2014 for approximately $19 billion. This acquisition marked one of the largest deals in tech history at the time.
How much was WhatsApp acquired for - in detail?
On February 19, 2014, Facebook announced its acquisition of the popular messaging app WhatsApp in a deal valued at approximately $19 billion. This figure includes $4 billion in cash and $12 billion in Facebook shares, with an additional $3 billion in restricted stock units to be granted to WhatsApp's founders and employees over four years following the acquisition. The transaction was one of the largest in tech history at the time and underscored Facebook's commitment to expanding its reach and influence in the mobile messaging space.
The acquisition price reflected several key factors. Firstly, WhatsApp had already achieved significant user growth, boasting over 450 million active users at the time of the acquisition. This large user base was particularly attractive to Facebook as it sought to maintain its competitive edge against other social media platforms and messaging apps. Secondly, WhatsApp's strong presence in international markets, especially in countries like India and Brazil, was seen as a strategic advantage for Facebook's global expansion plans.
Moreover, the acquisition price considered WhatsApp's potential for monetization. While WhatsApp initially operated on a subscription-based model, it later shifted to an ad-free approach, focusing on user experience. Facebook's acquisition aimed to integrate WhatsApp into its broader ecosystem of apps and services, potentially opening new avenues for revenue generation through targeted advertising and business messaging tools.
In summary, the $19 billion acquisition price of WhatsApp by Facebook was driven by a combination of WhatsApp’s substantial user base, strong international presence, and potential for future monetization within Facebook's ecosystem.