Sending a strong message: Facebook buys out WhatsApp for $19bn

Facebook has bought messaging app WhatsApp in a deal worth a total of $19bn (£11.4bn) in cash and shares.

17:20 20 February 2014

Networking giant Facebook has recently closed its biggest acquisition deal to date – the company has snapped up messaging app WhatsApp for a total of $19bn in cash and shares.

The app, which has more than 450 million monthly users, is extremely popular to people who are looking to avoid text and picture messaging charges. The company claims at least one million new users register to it service every day. It charges a $1 annual subscription fee although it has free model as well.

Facebook founder Mark Zuckerberg said that WhatApp’s services are “incredibly valuable.”

The deal to buy it includes $4bn in cash and approximately $12bn-worth of Facebook shares, plus an additional $3bn in stock to WhatsApp's founders and employees at a later date.

Meanwhile, WhatsApp co-founder Jan Koum has said that he plans to operate the firm “independenly and autonomously.” Once the deal has been finalised, he will become a member of Facebook’s board of directors. He said: "We're excited and honoured to partner with Mark and Facebook as we continue to bring our product to more people around the world.”