The ink is finally dry on Facebook's acquisition of WhatsApp,
and what a difference six months make, with the messaging app costing
Mark Zuckerberg & Co. $3bn more than expected when first announced.
Facebook
had planned on splashing $19bn - made up of a combination of shares,
restricted stock units, and cash - on its grab for the popular IM
platform, but a surge in the social site's own value in the intervening
period meant the cost was actually much higher than planned.
As for WhatsApp co-founder and CEO Jan Koum, he takes nearly 25m
restricted Facebook stock units on his own, a haul worth around $1.9bn.
Koum will stick around post-acquisition, joining Facebook's board. However, he won't get a huge salary. Instead, like Mark Zuckerberg,
he'll earn just $1 per year; in addition, he will not be eligible for
any Facebook bonuses.
Zoum's payout will instead come in stages over the next four years, as his stock units vest.
Facebook's acquisition came under close scrutiny, with the European
Union taking several months to decide whether the deal could be
considered anti-competitive. The final decision came late last week.
Then, competition policy chief Joaquín Almunia said that the instant
messaging space was simply too competitive for Facebook buying WhatsApp
to be deemed against the public interest, despite the popularity of
each. Messaging users generally spread their attentions across clients
and platforms, Almunia pointed out, considering Facebook and WhatsApp
not to be direct competitors.
Tuesday, October 07, 2014
Facebook’s $19bn WhatsApp grab just cost it $22bn
1:01 AM
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