Facebook buying messaging app WhatsApp for $19B
The world's
biggest social networking company said Wednesday that it is paying $12
billion in Facebook stock and $4 billion in cash for WhatsApp. In
addition, the app's founders and employees — 55 in all — will be granted
restricted stock worth $3 billion that will vest over four years after
the deal closes.
The deal
translates to roughly 11 percent of Facebook's market value. In
comparison, Google's biggest deal was its $12.5 billion purchase of
Motorola Mobility, while Microsoft's largest was Skype at $8.5 billion.
Apple, meanwhile, has never done a deal above $1 billion.
The
deal's price tag stunned Gartner analyst Brian Blau. "I am not
surprised they went after WhatsApp, but the amount is staggering," he
said.
