Andre Yoskowitz
19 Feb 2014 18:26
Facebook has made the biggest news announcement of the day, acquiring the massive messaging app WhatsApp for $19 billion in cash and stock.
WhatsApp has over 400 million active users, and Facebook is paying $4 billion in cash, $12 billion in stock, and the other $3 billion is in restricted stock for certain executives.
With the acquisition, WhatsApp CEO Jan Koum will join Facebook's board of directors and the company will remain independent as a brand and service.
WhatsApp had less than 50 employees at the time of acquisition and just one VC funder, Sequoia Capital, who invested $8 million in 2011 and has a stake worth over $2 billion now.