Eight months after we initially heard that Facebook had acquired WhatsApp for a whopping $19 billion, the deal has finally been approved by the various commissions involved in the US and Europe. In fact, the deal‘s price tag has actually increased to $21.8 billion.
WhatsApp founder Jan Koum has now officially joined Facebook‘s board, with a nice boat-load of Facebook shares. He will also be paid just $1 per year like Facebook CEO Mark Zuckerberg, according to the filings.
Even though Facebook can now do whatever they please with WhatsApp, they have vowed to keep the business primarily unchanged. In other words, don’t expect WhatsApp to abandon its $1 per year business model or add advertisements any time soon.
According to Koum, “There would have been no partnership between our two companies if we had to compromise on the core principles that will always define our company, our vision and our product.”
Facebook do want its businesses to grow in scale, however, but it is still unclear how exactly they plan to accomplish this. In a recent earnings call, Mark Zuckerberg said it’s all about ramping up Instagram, Oculus, and now WhatsApp to reaching one billion users.
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