Facebook to buy Mobile Instant Messaging App Whatsapp
Facebook is purchasing gigantic messaging application Whatsapp for $12 billion in stock and $4 billion in cash. This is 45th merger and acquisition by the company. Whatsapp has 400 million users. Facebook in past puchased huge photosharing app Instagram for $1 billion on April 9, 2012. Company stock falls 2.5% after few hours following WhatsApp purchase. [Source: Techcrunch ] Here is the press release: On February 19, 2014, Facebook, Inc. ("Guardian") entered into an Agreement and Plan of Merger and Reorganization (the "Merger Agreement") with Rhodium Acquisition Sub II, Inc., a Delaware company and wholly claimed (to some extent specifically and partially in a roundabout way) subsidiary of Parent ("Acquirer"), Rhodium Merger Sub, Inc., a Delaware partnership, an immediate wholly possessed subsidiary of Acquirer ("Merger Sub"), Whatsapp Inc., a Delaware enterprise ("Whatsapp"), and Fortis Advisors LLC, as the stockholders