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.