Last week we heard that the $19 billion acquisition of WhatsApp by Facebook had been approved by the European regulators, this was the final bit of approval that was need for the deal to go through.
Now it looks like Facebook has now finalized its acquisition, the completion of the deal was confirmed by a recent SEC filing.
The acquisition was accomplished by the merger of Merger Sub with and into WhatsApp (the “First Merger”), and upon consummation of the First Merger, Merger Sub ceased to exist and WhatsApp became a wholly owned subsidiary of Acquirer. The surviving corporation of the First Merger then merged with and into Acquirer, which will continue to exist as a wholly owned (in part directly and in part indirectly) subsidiary of the Company. At the closing, all outstanding shares of WhatsApp capital stock and options to purchase WhatsApp capital stock were cancelled in exchange for an aggregate of 177,760,669 shares of the Company’s Class A common stock and approximately $4.59 billion in cash to existing WhatsApp securityholders. A portion of the aggregate consideration is being held in escrow to secure the indemnification obligations of the WhatsApp securityholders. In addition, the Company awarded 45,941,775 restricted stock units (“RSUs”) to WhatsApp employees. On the closing date, Jan Koum, WhatsApp’s co-founder and CEO, became a member of the Company’s Board of Directors (the “Board”).
WhatsApp has become incredibly popular, the messaging app now has around 600 million active users, who send and received billions of messages every month.
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