Facebook to acquire WhatsApp for $19 Billion Cash & Stock

Mark Says,

I’m excited to announce that we’ve agreed to acquire WhatsApp and that their entire team will be joining us at Facebook.

The purchase price is insanely high for a startup with only 55 employees, and many multiples of Facebook’s reported $3 billion bid for Snapchat last year. The $19 billion valuation means Facebook believes WhatsApp is worth over $42 per user. Major companies that have market caps under $19 billion include: United Continental, American Airlines, Ralph Lauren, Marriot International, Campbell Soup, Coach, and Tyson Foods.

The deal for WhatsApp includes 183,865,778 shares of Facebook stock, valued at $12 billion, along with $4 billion in cash. Once the acquisition closes, Facebook has promised to grant 45,966,444 restricted stock units (RSUs) to WhatsApp founders and employees, tacking on an additional $3 billion in value to the deal. The additional RSUs will vest over four years following closing.

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