The deal is broken down as $12B in Facebook shares, $4B in cash and an additional $3B in RSUs for employee retention.
Facebook posted on its blog, detailing the reasoning behind the acquisition as well. The post confirms that WhatsApp will continue to operate independently and retain its brand.
WhatsApp co-founder and CEO Jan Koum will join Facebook’s board, however Brian Acton who was turned down when he applied to join Facebook in 2009 prompting him to launch WhatsApp will remain with the messenger giant.
Kevin Systrom and Evan Spiegel are both former Stanford students who built wildly-popular photo apps that are worth billions of dollars. Systrom worked for Google then co-founded Instagram. Spiegel dropped out of Stanford as soon as he got seed funding for his startup, Snapchat. Snapchat has more than 80 million monthly active users; Instagram has more than 200 million.
A lot can happen in few years. You can go from the vice president of engineering for Yahoo, to a guy looking for a job at Facebook, to a startup founder, to a guy that just sold that startup to Facebook for a jaw-dropping $19 billion. And that's exactly what happened to WhatsApp co-founder Brian Acton. In 2009 he applied for a job at Facebook and was rejected. Here's his sad-but-hopeful tweet.