The text base service Whatsapp has been bought by Facebook for $19 billion in cash and stocks.
The world’s largest social networking company has made one of the companies biggest purchases in buying the texting service Whatsapp with $12 billion in Facebook stock, $4 billion in cash, and the other $3 billion in restricted stock going to the app’s 55 creators and employees. This transaction will be larger than anything Microsoft, Apple, or Google have ever done.
Whatsapp is a messaging service that allows users to chat one-on-one or in groups allowing them to send recordings, pictures, video along with messages. It is thought that Facebook will purchase Whatsapp to capture the audience of teenagers and young adults who have taken to using it for messaging over Facebook which has become used by their parents and grand-parents.
‘‘Facebook seems to be in acknowledgement that people are using a lot of different apps to communicate,’’ said eMarketer analyst Debra Aho Williamson. ‘‘In order to continue to reach audiences, younger in particular, it needs to have a broader strategy…not put all its eggs in one basket.’’
Facebook has said it will keep Whatsapp as a separate service just as it did with Instagram which the company purchased in 2012.