Facebook has formally closed the deal to buy messaging app WhatsApp though publishing the document it filed for the transaction with the US Securities and Exchange Commission. This came a few days after the final hurdle was overcome by the deal—it got the approval of the European Commission.
The most popular social networking site in the world announced the acquisition of WhatsApp in February. Back then, the company said it would spend $16 billion for the transaction. The amount included $4 billion in cash transaction and $12 billion in company shares.
Also part of the deal is an additional $3 billion worth of restricted stock that would be awarded to WhatsApp founders as well as employees. This amount would be conferred in the next four years following the completion of the deal, based on the agreement.
What’s up with WhatsApp?
So what happens to WhatsApp now that it has just become a subsidiary of its buyer, Facebook? According to the document filed, the app would remain as a wholly owned subsidiary. Co-founder and current CEO Jan Koum would be included in the Board of Directors of Facebook. Another co-founder, Brian Action, who is also a company vice president, has declined to be part of the Board.
On the other hand, Koun would also receive a yearly base salary of $1. He would also not be eligible for any bonus. According to reports, his salary is in line with other high-profile tech executives.
After the transaction
Facebook said it expects the acquisition to help it connect more to consumers from all over the world. The company said it would create greater value especially for those people who use WharsApp. Earlier this year, Facebook founder Mark Zuckerberg said WhatsApp could connect up to a billion users soon.
Since the acquisition was announced a few months ago, WhatsApp was never spared from the inevitable glitches that went its way. The app’s users have agreed that they did not notice any difference in WhatsApp’s service. Despite the transaction, the app is expected to do what it does, free from any form of ads.