Boston, MA 02/20/2014 (wallstreetpr) – Facebook Inc. (NASDAQ:FB) continues to cement its position as a fast growing mobile company after announcing it had entered into a definitive agreement to purchase the fast growing cross platform mobile messaging company WhatsApp. The purchase settlement fee is thought to be around $19 billion in cash and stock. WhatsApp commands a user base of $450 million around the world that should add to the already expansive Facebook user base.
Terms of the deal
Facebook Inc. (NASDAQ:FB) has announced in a regulatory filing that the deal will involve $4 billion in direct cash as well as 183.9 million in Facebook shares valued at $12 billion. The agreement further includes $3 billion in restricted shares that will go to WhatsApp founders as well as the company’s employees.
This marks Facebook Inc. (NASDAQ:FB) high profile acquisition in its plans to diversify its revenue collection avenues as it continues to strategies on how to better attack social media experience. Facebook currently commands a huge cash balance that gives it, the muscle and will to acquire acquisitions that have a higher probability of prosperity.
Facebook Inc. (NASDAQ:FB) Chief executive Officer Mark Zuckerberg maintains the company’s main goal is to enable more Facebook users to access the social network service through mobile devices, this strategy has resulted in lots of success in terms of revenue collected from mobile interactions.
Facebook clocks an all-time high in the market
Facebook Inc. (NASDAQ:FB) shares have been soaring in the market for the past year, successfully growing by 1% on Wednesday trading session, a margin that was enough for it to clock a new all-time high closing the day at $68.06. Since its initial public offering Facebook shares have soared by 80% giving investors the much needed value of their invested funds. Facebook is on a growth mode having recorded 957% growth in earnings per share, last year according to Zacks notes.
