Facebook is purchasing messaging giant WhatsApp for $16B in cash and stock, according to a regulatory filing. The deal is being cut for $12B in Facebook shares, $4B in cash and an additional $3B in RSUs for employee retention.

A termination fee is attached to the deal that would cost Facebook $1B in cash and $1B in shares if the deal fails to pass regulatory muster.

Facebook has posted on its blog, detailing the reasoning behind the acquisition as well. The post notes that WhatsApp will continue to operate independently and retain its brand. In addition,. WhatsApp co-founder and CEO Jan Koum will join Facebook?s board.

Facebook notes that WhatsApp has over 450M MAUs, with 70% of those active each day. In a staggering comparison, Facebook also notes that the messaging volume of WhatsApp approaches the SMS volume of the entire global telecom industry and that it's adding 1M users a day. read more
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WhatsApp Messenger is a cross-platform mobile messaging app which allows you to exchange messages without having to pay for SMS. WhatsApp Messenger is available for iPhone, BlackBerry, Android, Windows Phone and Nokia and yes, those phones can all message each other! Because WhatsApp Messenger uses the same internet data plan that you use for email and web browsing, there is no cost to message and stay in touch with your friends.

In addition to basic messaging WhatsApp users can create groups, send each other unlimited images, video and audio media messages.