Few minutes ago, Facebook the social media giant made a surprise announcement in a blog post that they have agreed to buy leading instant messaging platform WhatsApp for a whopping $16 billion.
To better explain the deal Facebook highlighted some of WhatsApp’s key metrics: It’s estimated that over 450 million people are using WhatsApp worldwide today of which 70% are active, adding another million users per day and quickly approaching the entire volume of carrier-based SMS worldwide.
“WhatsApp is on a path to connect 1 billion people. The services that reach that milestone are all incredibly valuable,” said Mark Zuckerberg, Facebook founder and CEO. “I’ve known Jan for a long time and I’m excited to partner with him and his team to make the world more open and connected.”
Now, the deal is expected to close later this year with a juicy $2 billion payout for WhatsApp’s founders ($1 billion in cash, $1 billion in Class A common stock) should things fall through due to failure of obtaining the required regulatory approvals or otherwise.