Although, the process of Facebook's acquisition of WhatsApp started earlier this year around the end of February, the social media giant has finally closed the deal today.
In other words, Facebook, today, completed its $22 billion (back in February it was mentioned as $19 Billion) worth a buy of mobile messaging application - WhatsApp. The acquisition cost has increased by $3 billion because of the increased value of Facebook's stock in recent months.
According to the SEC filing, the final price turned out to be $4.59 billion in cash and 177.7 million shares of Class A common Facebook stock, along with 45.9 million in restricted stock units provided to WhatsApp employees, giving the purchase a total value of just under $22 billion.
WhatsApp co-founders Jan Koum is also offered to become social network's board as part of the deal. Along with joining the Facebook board of directors, Jan Koum will remain chief of WhatsApp. However, Koum's salary will be a dollar a year, according to a documents filed with the US Securities and Exchange Commission. The symbolic annual pay mirrors to that of Facebook's chief Mark Zuckerberg.
Also, WhatsApp co-founder Brian Acton will remain with the company under terms of the acquisition, which promises "inducement grants" of millions of shares of stock that will incrementally vest during the coming four years for Koum and Acton if they remain with the company, according to Facebook.
In a statement explaining its approval of the USD 19 billon deal, the European Commission, the EU's executive arm, said Facebook and WhatsApp were "not close competitors" and that consumers would continue to have a "wide array of choices".
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