Facebook will buy out the popular mobile-messaging company WhatsApp for $19 billion (Re. 1, 14, 000 Crore) as Facebook looks for ways to boost its popularity among a young crowd. The acquisition, with more than 45 crore users globally has stunned many tech experts with its hefty price tag but it shows Facebook's determination to win the market for messaging.
As part of the deal, WhatsApp co-founder and CEO Jan Koum will join Facebook's board, and Facebook will grant an additional $3 billion (18, 000 Crore) worth of shares to WhatsApp founders, including Koum. That is apart from the $16 billion (Re. 96, 000 Crore) in cash and stock that Facebook will pay.
Combining messaging and social networking, messaging apps enable smartphone users to share messages to pictures and video clips - bypassing the need to pay for these services. WhatsApp is adding about 10 lakh users per day.