Register

    Facebook closes WhatsApp purchase now worth $21.8B

    By SHOOTUpdated:No Comments2566 Views
    In this June 11, 2014 photo, a man walks past a Facebook sign at an office on the Facebook campus in Menlo Park, Calif. (AP Photo).
    NEW YORK (AP) --

    Facebook has completed its acquisition of the mobile messaging service WhatsApp for almost $22 billion, up from the original $19 billion when the cash-and-stock deal was struck early this year thanks in part to the rising price of Facebook shares.

    Facebook named WhatsApp co-founder and CEO Jan Koum to its board Monday. WhatsApp is by far the largest acquisition for the Menlo Park, California company, and bigger than any deals made by Google, Microsoft or Apple.

    The price that Facebook was willing to pay raised eyebrows when the buyout was announced Feb. 19, though analysts agreed that landing the popular site made sense. Including cash, stock and restricted stock awarded to WhatsApp employees, the deal is worth $21.8 billion based on Facebook's stock price on Monday.

    WhatsApp has been growing rapidly, especially in developing countries like Brazil, India, Mexico and Russia, and now has more than 500 million users.

    WhatsApp lets users chat with their phone contacts, both one-on-one and in groups. It also allows people to send texts, photos, videos and voice recordings over the Internet and lets them text or call people overseas without heavy charges. Free to use for the first year and costing $1 per year after that, the service has no advertising.

    Facebook, which has its own mobile messaging app called Messenger, plans to keep WhatsApp as a separate service.

    The acquisition was approved by antitrust authority of the European Union on Friday.

    Facebook's shares climbed 32 cents to $77.76 in afternoon trading on Monday.

    Tags:Facebook



    DirecTV calls off acquisition of rival Dish, possibly ending a yearslong pursuit

    Friday, November 22, 2024
    Dish Network satellite dishes are shown at an apartment complex in Palo Alto, Calif., Feb. 23, 2011. (AP Photo/Paul Sakuma, File)

    DirecTV is calling off its planned acquisition of rival Dish after the offer was rejected by bond holders at that company.

    The deal was reliant on Dish bond holders agreeing to trade in the debt they held for debt in the new company, a swap that would have cost them about $1.6 billion, collectively.

    The retreat by DirecTV this week may end a years-long effort by the company to acquire both Dish and Sling after it announced the bid in September.

    DirecTV was looking to acquire Dish TV and Sling TV from its owner EchoStar in a debt exchange transaction that included a payment of $1, plus the assumption of approximately $9.8 billion in debt. The deal was contingent on several factors, including regulatory approvals and bondholders writing off debt related to Dish.

    "While we believed a combination of DirecTV and Dish would have benefited all stakeholders, we have terminated the transaction because the proposed exchange terms were necessary to protect DirecTV's balance sheet and our operational flexibility," DirecTV CEO Bill Morrow said in a statement.

    The prospect of a DirecTV-Dish combo has long been rumored, and reported talks resurfaced over the years. And the two almost merged more than two decades ago — but the Federal Communications Commission blocked the deal valued at the time at $18.5 billion deal, citing antitrust concerns.

    The pay-for-TV market has shifted significantly since. As more and more consumers tune into online streaming platforms, demand for more traditional satellite entertainment continues to shrink.

    DirecTV says that it will continue to invest in next-generation streaming platforms and offer new packaging options while integrating content from live TV alongside direct-to-consumer... Read More

    MySHOOT Profiles


    Add A Comment