Facebook acquiring WhatsApp for $16 billion

Facebook acquiring WhatsApp for $16 billion

Popular social network Facebook has revealed that it is acquiring mobile instant-messaging service WhatsApp for approximately $16 billion. The acquisition is apparently aimed at expanding the global reach of Facebook.

According to a Wednesday-published filing with the US Securities and Exchange Commission, the acquisition of WhatsApp by Facebook will make the mobile messaging service a wholly-owned subsidiary of Facebook. As per the acquisition deal, Facebook will pay $4 billion in cash for WhatsApp, with the remainder of $12 billion acquisition amount to be provided in the form of Facebook stock.

The whopping $16 billion acquisition of WhatsApp by Facebook - a deal which requires regulatory approval - marks the social network's biggest acquisition to date. It is also one of the biggest acquisition deals in the social networking arena thus far.

WhatsApp mobile messaging service gives the users the ability to exchange text messages, photos, and videos over their smartphones. The service is extremely popular in countries like Brazil, India, Indonesia and South Africa and Indonesia - regions in which Facebook is trying to expand its footprint.

Noting that the merger with Facebook will not change the WhatsApp service, Jan Koum - co-founder and CEO of WhatsApp - said: "WhatsApp will remain autonomous and operate independently. You can continue to enjoy the service for a nominal fee. You can continue to use WhatsApp no matter where in the world you are, or what smartphone you're using."