🕐25.02.14 - 07:54 Uhr

INDUSTRY NEWS - FACEBOOK ACQUIRES WHATSAPP FOR US$19 BILLION



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INDUSTRY NEWS - 


As a shareholder/ investor in Primary Petroleum [TSXV:PIE   OTCQX: PETEF] and with the upcoming AGM on March 4th approving the merger between Primary and Keek, this INDUSTRY NEWS below is very compelling from a valuation standpoint in the Social Media space.

The transaction between FaceBook and WhatsApp represents a valuation metric of approximately US$42 per monthly active user.

Currently WhatsApp is a global messaging app that does not generate any monetization strategy from its users.

As a comparison, Keek currently has approximately 12 million monthly active users (and growing).



At a valuation metric of US$42 per user, it is clear to see how under-valued  and how exciting the merger opportunity will be for all Primary and Keek shareholders post the AGM next month.

It is anticipated that the combined public company after the AGM will have approximately 340 million common shares on an issued and outstanding basis.

We will continue to keep you informed with INDUSTRY NEWS in order for you to become more familiar with the new direction Primary has chosen in technology and social media.
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Facebook to Acquire WhatsApp

Wednesday, February 19, 2014

Facebook to Acquire WhatsApp

17:07 EST Wednesday, February 19, 2014

- Acquisition accelerates Facebooks ability to bring connectivity and utility to the world
- Leading mobile messaging company will continue to operate independently and retain its brand
- WhatsApp co-founder and CEO Jan Koum to join Facebook Board of Directors

MENLO PARK, Calif., Feb.

19, 2014 /PRNewswire/ -- Facebook today announced that it has reached a definitive agreement to acquire WhatsApp, a rapidly growing cross-platform mobile messaging company, for a total of approximately $16 billion, including $4 billion in cash and approximately $12 billion worth of Facebook shares.  The agreement also provides for an additional $3 billion in restricted stock units to be granted to WhatsApps founders and employees that will vest over four years subsequent to closing.   

WhatsApp has built a leading and rapidly growing real-time mobile messaging service, with:

  • Over 450 million people using the service each month;
  • 70% of those people active on a given day;
  • Messaging volume approaching the entire global telecom SMS volume; and
  • Continued strong growth, currently adding more than 1 million new registered users per day.

The acquisition supports Facebook and WhatsApps shared mission to bring more connectivity and utility to the world by delivering core internet services efficiently and affordably.

 The combination will help accelerate growth and user engagement across both companies.  

"WhatsApp is on a path to connect 1 billion people.

The services that reach that milestone are all incredibly valuable," said Mark Zuckerberg, Facebook founder and CEO.

"Ive known Jan for a long time and Im excited to partner with him and his team to make the world more open and connected."

Jan Koum, WhatsApp co-founder and CEO, said, "WhatsApps extremely high user engagement and rapid growth are driven by the simple, powerful and instantaneous messaging capabilities we provide.

Were excited and honored to partner with Mark and Facebook as we continue to bring our product to more people around the world."

Facebook fosters an environment where independent-minded entrepreneurs can build companies, set their own direction and focus on growth while also benefiting from Facebooks expertise, resources and scale.  This approach is working well with Instagram, and WhatsApp will operate in this manner.  WhatsApps brand will be maintained; its headquarters will remain in Mountain View, CA; Jan Koum will join Facebooks Board of Directors; and WhatsApps core messaging product and Facebooks existing Messenger app will continue to operate as standalone applications.    

Upon closing of the deal, all outstanding shares of WhatsApp capital stock and options to purchase WhatsApp capital stock will be cancelled in exchange for $4 billion in cash and 183,865,778 shares of Facebook Class A common stock (worth $12 billion based on the average closing price of the six trading days preceding February 18, 2014 of $65.2650 per share).  In addition, upon closing, Facebook will grant 45,966,444 restricted stock units to WhatsApp employees (worth $3 billion based on the average closing price of the six trading days preceding February 18, 2014 of $65.2650 per share).

 As of February 17, 2014, Facebook had 2,551,654,996 Class A and B shares outstanding plus approximately 139 million dilutive securities primarily consisting of unvested RSUs.  The Class A common stock and RSUs issued to WhatsApp shareholders and employees upon closing will represent 7.9% of Facebook shares based on current shares and RSUs outstanding. 

In the event of termination of the Merger Agreement under certain circumstances principally related to a failure to obtain required regulatory approvals, the Merger Agreement provides for Facebook to pay WhatsApp a fee of $1 billion in cash and to issue to WhatsApp a number of shares of Facebooks Class A common stock equal to $1 billion based on the average closing price of the ten trading days preceding such termination date.

Facebook was advised by Allen & Company LLC and Weil, Gotshal & Manges LLP; and WhatsApp was advised by Morgan Stanley and Fenwick & West, LLP.


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