Earlier today, Facebook announced that they will be acquiring mobile messaging startup WhatsApp for $16 billion. Four billion of the acquisition will come in cash while approximately $12 billion will be paid out in Facebook shares.
The WhatsApp Messenger is a cross-platform mobile messaging app, available for iPhone, Android, BlackBerry, and Nokia, which allows users to exchange messages without having to pay for SMS. The Santa Clara-based startup boasts more than 450 million active users, and as Facebook founder and CEO Mark Zuckerberg said in the company’s release, “WhatsApp is on a path to connect 1 billion people. The services that reach that milestone are all incredibly valuable.”
At the time of the acquisition the lone investment in WhatsApp came from Sequoia Capital, an $8M round back in 2009, lead by Jim Goetz. The firm had the following to say via Twitter:
Here are four numbers that explain why @Facebook acquired @WhatsApp http://t.co/TPm1iaBgld
— Sequoia Capital (@Sequoia_Capital) February 19, 2014
450: @WhatsApp has more than 450 million ACTIVE users, & reached that number faster than any other company in history http://t.co/TPm1iaj775
— Sequoia Capital (@Sequoia_Capital) February 19, 2014
32: With only 32 engineers, 1 WhatsApp dev supports 14 million active users, a ratio unheard of in the industry http://t.co/TPm1iaj775
— Sequoia Capital (@Sequoia_Capital) February 19, 2014
1: After 1 year of free use @WhatsApp costs $1 per year. Jan keeps a note at his desk: No Ads! No Games! No Gimmicks! http://t.co/TPm1iaj775
— Sequoia Capital (@Sequoia_Capital) February 19, 2014
0: @WhatsApp hasn’t spent a penny on marketing. All growth is from happy customers encouraging friends to try it http://t.co/TPm1iaj775
— Sequoia Capital (@Sequoia_Capital) February 19, 2014
