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Facebook Buying WhatsApp For $16B In Cash & Stock + $3B In RSUs

Facebook Buying WhatsApp For $16B In Cash & Stock + $3B In RSUs

by Harsh ShahFebruary 20, 2014

Facebook buying Whatsapp 2014No it is not Google nor Microsoft, It is Facebook who undertakes messaging giant WhatsApp. Facebook bought WhatsApp for $12B share and $4B in cash with addition of $3B RSUs (Restricted stock units) According to the report[quote]On February 19, 2014, Facebook, Inc. (“Parent”) entered into an Agreement and Plan of Merger and Reorganization (the “Merger Agreement”) with Rhodium Acquisition Sub II, Inc., a Delaware corporation and wholly owned (in part directly and in part indirectly) subsidiary of Parent (“Acquirer”), Rhodium Merger Sub, Inc., a Delaware corporation, a direct wholly owned subsidiary of Acquirer (“Merger Sub”), WhatsApp Inc., a Delaware corporation (“WhatsApp”), and Fortis Advisors LLC, as the stockholders’ agent.
Pursuant to the terms of the Merger Agreement, Merger Sub will merge with and into WhatsApp (the “First Merger”), and upon consummation of the First Merger, Merger Sub will cease to exist and WhatsApp will become a wholly owned subsidiary of Acquirer. The surviving corporation of the First Merger will then merge with and into Acquirer, which will continue to exist as a wholly owned (in part directly and in part indirectly) subsidiary of Parent. Upon consummation (the “Closing”) of the transactions contemplated by the Merger Agreement (the “Merger”), all outstanding shares of WhatsApp capital stock and options to purchase WhatsApp capital stock will be cancelled in exchange for an aggregate of 183,865,778 shares of Parent’s Class A common stock (valued at $12 billion based on the average closing price of the six trading days preceding February 18, 2014 of $65.2650 per share (“Specified Price”)) and $4 billion in cash to existing WhatsApp securityholders, subject to certain adjustments such that the cash paid will comprise at least 25% of the aggregate transaction consideration. In addition, upon Closing, Parent will grant 45,966,444 restricted stock units to WhatsApp employees (valued at $3 billion based on the Specified Price)[/quote]


Mark has also announced recently that WhatsApp team is going to merge with  Facebook. He also stated his mission in simply word out there by adding ” to make the world more open and connected”. Facebook buying WhatsApp can be game changer in social media

Facebook Buying WhatsApp For $16B In Cash & Stock + $13B In RSUs


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About The Author
Harsh Shah
Harsh Shah is a co-founder of , where he research , write & share his knowledge about Android phones and apps. He graduated from Mumbai University with Business management degree in 2014. To know more visit :