Facebook buys WhatsApp for $16B

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Update: Facebook share price has dropped 5% since this was announced.

Facebook had just bought WhatsApp for $16B with an extra $3B in retainers for staff.

We’ve heard that the funds are divided in a ratio of $4B in cash and $12B in stock.

The retainers were said to be distributed as restricted stock to the 55 employees of WhatsApp.

Our thoughts on this are that Facebook plans to use their acquisition of WhatsApp to give them a platform to better compete with Apple’s iMessage.

We’ll bring more on this as we get it.

Akhil Malhotra

I am really interested in RPG style games, something where you can upgrade your character and weapons. I also like FPS games. Currently playing: Fifa 14, BattleField 4 and F1 2013.