Owners of popular cross-platform WhatsApp mobile messaging app resisted selling the company to Google a year ago for US $1 Billion stating numerous times that they were not for sale. Well, all of that has changed today as Facebook has purchased WhatsApp for cash and stock. This causes a tidal shift in the messaging landscape and gives Facebook access to 430 million WhatsApp users and the presence in mobile that they've long desired.
Specfics of the deal need to be formalized but the transaction involves $12 billion in Facebook stock and $4 billion in cash for WhatsApp. WhatsApp's founders and employees will also get $3 billion in restricted stock.
Facebook CEO Mark Zuckerberg says WhatsApp is on its way to 1 billion global users. This is huge global push for Facebook since WhatsApp is a familiar and trusted platform right now. Facebook also purchased popular photo sharing service Instagram $ 1 Billion in 2012. Facebook's stock fell 5% in after hours trading following the news of the acquisition. Some user may not relish Facebook owning their mobile messaging app, competitors include BlackBerry Messenger, which was the originator of this type of free SMS, voice and photo-capable messaging application. BBM is currently cross platform for BlackBerry, iOS and Android.