Facebook to buy WhatsApp for $19 bn

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brijkishorrajput
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Joined: Fri May 09, 2014 2:02 am

Re: Facebook to buy WhatsApp for $19 bn

#1 Postby brijkishorrajput » Fri May 09, 2014 2:50 am

Facebook CEO Mark Zuckerberg is definitely not finished with his shopping. Barely a month after Facebook spent $19 billion on WhatsApp, the company on Wednesday announced that it was buying Oculus VR, a firm that was working on a virtual reality headset for video gamers.

For Oculus, Facebook is forking out around $2 billion. According to the company, "this includes $400 million in cash and 23.1 million shares of Facebook common stock."For now it is not clear how Facebook, which is not strictly a gaming company and neither has any known gaming-specific plans, will use Oculus technology. Zuckerberg in his post was vague on why his company was buying the maker of a virtual reality headset.

"Oculus's mission is to enable you to experience the impossible. Their technology opens up the possibility of completely new kinds of experiences," Zuckerberg wrote. "Immersive gaming will be the first, and Oculus already has big plans here that won't be changing and we hope to accelerate. We're going to focus on helping Oculus build out their product and develop partnerships to support more games. Oculus will continue operating independently within Facebook to achieve this."

ritumandal
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Joined: Sat Apr 26, 2014 4:41 pm

Re: Facebook to buy WhatsApp for $19 bn

#2 Postby ritumandal » Sun Apr 27, 2014 9:10 am

Facebook was best social networking site of world but now it is losing his image among teens. So, Facebook comes with great and big marketing strategy of acquiring WhatsApp which was shocking deal. Facbook buy fast growing mobile messaging WhatsApp for $19 billion in cash and stock in landmark deal. It helps company to come close to the younger user in few months.
The transaction involves $4 billion in cash, $12 billion in stock and $3 billion in restricted stock that top over several years. After the deal with WhatsApp, Facebook market share raised and hence help in capturing social network messaging market.
This deal helps to connect with user. Teenagers prefer WhatsApp more than other social messaging apps. Facebook brought WhatsApp for $42 per user whereas Japanese e-commerce giant Rakuten bought Viber for $3 per user, in a $900 million deal.
It is clear from both the companies that WhatsApp will continue to work independently and will continue with a policy of no advertising.

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Shivani
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Facebook to buy WhatsApp for $19 bn

#3 Postby Shivani » Thu Feb 20, 2014 11:26 am

As we all know, that facebook is losing its title of being the most favourite website among teens.So, the company has come up with a great & big deal with WhatsApp..which also seems to be a shocking deal.Facebook Inc will buy fast-growing mobile-messaging startup WhatsApp for $19 billion in cash and stock in a landmark deal it will help them to bring the younger users closer which they had lost in last few months.

The transaction involves $4 billion in cash, $12 billion in stock and $3 billion in restricted stock that vests over several years. The WhatsApp deal is worth more than Facebook raised in its own IPO and underscores the social network's determination to win the market for messaging.

Through this deal Facebook will get an entry in to the new users especially teens who now-a-days prefer WhatsApp and rivals, over it.

Facebook is paying $42 per user with the deal, dwarfing its own $33 per user cost of acquiring Instagram. By comparison, Japanese e-commerce giant Rakuten just bought messaging service Viber for $3 per user, in a $900 million deal.

Both the companies have made it clear that WhatsApp will continue to operate independently, and will continue its policy of no advertising.


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