Facebook has acquired WhatsApp for a total of $19 billion. That sum comprises $12 billion in shares, $4 billion in cash, and $3 billion in restricted stock.
This video shows CNN discussing the acquisition. The news anchor clearly knows nothing about mobile apps as a whole, let alone WhatsApp specifically. She obviously lives under a rock.
The huge sum of money Facebook has paid for WhatsApp has shocked many people, but the social network clearly feels it was justified.
WhatsApp has 450 million users, who are young and engaged. It also has a revenue stream, charging users $1 per year after the first 12 months. So it isn’t all that risky of an investment in the big scheme of things.
