Facebook closes $19 billion WhatsApp deal

Facebook has announced that it has completed its $19 billion acquisition WhatsApp. This deal was negotiated in Mark Zuckerberg’s home over the course of two days in February. also sealed over a bottle Jonnie Walker Scotch.

WhatsApp has maintained its independence since then. However, the closing of the deal marks a beginning of a gradual integration. Facebook provides legal and administrative support to the largest mobile messaging service in the world and — eventually — discovers new ways to monetize the company that spent more than Iceland’s GDP.

Facebook will now give 177.8 millions shares of its Class-A common stock and $4.59 Billion in cash to WhatsApp shareholders. This was stated in an SEC file this weekend. Additionally, 45.9 M shares (restricted stock units to WhatsApp employees) will be given to complete the deal.

These parties are fortunate that Facebook shares now have a higher value than when they were announced in February. Re/code’s Peter Kafka notes that the deal is worth approximately $21.8 billion.

Although the acquisition went through several regulatory hurdles, it finally passed the last one on Friday when the European Union gave the green light.

WhatsApp’s $1 per year subscription generates revenue in countries with clear carrier billing systems. These countries also have high credit card penetration. According to Forbes’ estimates, WhatsApp earns about $20 million annually. Facebook will almost certainly explore other revenue streams for the messaging service, even though this is not enough to justify its $19 billion price tag.

WhatsApp is the most global messaging service with over 600 million users per month from Europe, South America, and Asia. It’s possible that there might be a money transfer service to help the increasingly globalized workforce.

It is not difficult to see Facebook’s interest and involvement in money transfer. We reported in April that Facebook had been working on a European money-transfer service and a storage service since late 2013. Two months later hired PayPal CEO David Marcus to head its “Messaging Products” division. Last week, screenshots were tweeted by a Stanford computer scientist showing that Facebook had already placed elements of a payment infrastructure in Messenger for iOS. This had not been activated.

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