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Thursday 20 February 2014

WhatsApp Founders Become Billionaires with FB Deal

On Wednesday, Facebook bought fast-growing mobile messaging application, WhatsApp for $19 billion dollar and inventory in a milestone cope that places the biggest online community nearer to the heart of crowd and it bring younger users into the flip. The transaction involves $4 billion in cash, $12 billion in stock and $3 billion in restricted stock that vests over several years.
Zuckerberg and Koum on the conference call did not say how the company would make money beyond a $1 annual fee, which is not charged for the first year. "The right strategy is to continue to focus on growth and product," Zuckerberg said. How the service will pay for itself is not yet clear.
Zuckerberg and Koum said that WhatsApp will continue to operate independently, and promised to continue its policy of no advertising.  WhatsApp was founded by former Yahoo employees Brian Acton and Jan Koum in 2009 took its name from a play on the phrase "What's Up," according to its website. The stated mission was to build a better alternative to traditional SMS messaging in a world where Smartphone were clearly becoming ubiquitous. The deal provides Facebook entree to new users, including teens who eschew the mainstream social networks but prefer WhatsApp and rivals, which have exploded in size as private messaging takes off. On last day, the Menlo Park, Calif.-based company announced a record $19 billion for messaging service WhatsApp, instantly taking its cofounders Jan Koum and Brian Acton into the realm of 10-figure fortunes.

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