ICP Facebook

Ingerson Capital Partners analysis has revealed Facebook has announced that it has completed its $ 19 billion acquisition of WhatsApp, a deal that was hashed out over a bottle of Jonnie Walker scotch in Mark Zuckerberg's home over a few days in February.


Since then, WhatsApp has operated completely independently, but the deal's completion marks the start of a gradual integration as Facebook provides legal and administrative support to the world's largest mobile messaging service and — eventually, we can assume — finds new ways to monetize the company.


Jan Koum and Brian Acton, the creators of WhatsApp, became billionaires last February when Facebook announced it would buy the firm they founded five years ago for a staggering $ 19 billion. The founders had held considerable interests in the company despite having generally avoided venture capital investments up until that point. At the time of the purchase, Koum still held about 45 percent of the company, netting him $ 6.8 billion and former Yahoo engineer Acton $ 3.5 billion after taxes. Jan Koum, the founder of WhatsApp, has been appointed to the Facebook board of directors and will match Zuckerberg's $ 1 compensation.


To finalize the purchase, Facebook would issue 177.8 million shares of its Class A common stock and $ 4.59 billion in cash to WhatsApp's shareholders, as well as 45.9 million shares (restricted stock units) to WhatsApp's employees, according the SEC filing. , the value of Facebook's shares has increased since the deal was disclosed in February, making the arrangement worth about $ 21.8 billion.


The deal has gone through a few regulatory hurdles, but the final one was cleared last Friday when the European Union gave it the go-ahead.


According to Ingerson Capital Partners, WhatsApp makes money by charging a $ 1 a year subscription in a few countries with transparent carrier billing systems and intense credit card penetration, bringing around $ 20 million in annual income. That isn't enough to warrant a $ 19 billion price. tag, so Facebook is likely certainly considering new revenue streams for the messaging service.


With over 600 million monthly active users from Europe to South America to Asia, WhatsApp is the most globally diversified messaging service. Thus a money transfer service for the world's increasingly globalized workforce could be one option.


The fact that Facebook is interested in money transfers is well known. We reported in April that Facebook had been working on a European-wide money transfer and storage service since late 2013. It appointed PayPal CEO David Marcus as the head of the company's "Messaging" Products "two months later. Then, last week, screenshots tweeted by a Stanford computer science student revealed that Facebook had set up pieces of a payment infrastructure in Messenger for iOS. However, it had not yet been activated.