Facebook increases the closing of WhatsApp
Social networking giant Facebook has increased by a year the closing of its $19 billion deal to get instant messaging app WhatsApp. The California-based company, Facebook will have to pay WhatsApp $1 billion in cash and $1 billion in stock options in case it fails to close the deal within the proposed time.
Facebook on this, said the acquisition is subject to customary closing conditions, including regulatory approvals, and is supposed to close in the 2nd half of 2014. Facebook, last week at US SEC said that:
[quote]This date may be increased by us to August 19, 2015, if as of August 19, 2014 certain closing conditions applicable to Facebook have been satisfied,[/quote]
In the filing, it is mentioned that, “We have agreed to pay a termination fee to WhatsApp of $ 1 billion in cash and issue a number of shares of our Class A common stock equal to $ 1 billion, based on average closing price of the ten trading days preceding such termination, if the closing of this acquisition has not occurred by August 19, 2014,”
The colossal transaction which includes $4 billion in cash, $ 3 billion in restricted stock units and $12 billion worth of Facebook shares will hike the world’s biggest social network attendance by adding 450 million users of WhatsApp.