You will see talk of WhatsApp’s CEO and co-founder Jan Koum’s new salary of just a dollar. Don’t cry too much for him, because his company just finalized the Facebook acquisition of his company, WhatsApp. He will now join Facebook’s Board of Directors.
Facebook won EU regulatory approval last week, and today confirmed the closing of the deal via a document filed with the SEC. According to the filing, WhatsApp will remain a wholly owned subsidiary of Facebook, Koum gets a board seat, while Brian Acton, the other co-founder, will not.
The deal was announced this past February, with the price tag shocking many. The deal was for $4 billion in cash and $12 billion in stock. Whatsapp equity holders are loving the rally in Facebook shares, which has the deal now worth over $21 billion. Talking private jet and yacht money now.
The FTC rubber stamped the deal, with a slight warning to honor privacy obligations. It was the EU side where Facebook faced more scrutiny. They looked at the social network services, advertising and the fact Facebook had its own messaging app. In the end, no competition concerns were found.
For now, WhatsApp users will notice little in the way of changes. Facebook has promised to keep the service ad-free, supported by its $0.99 fee per year. You have to wonder how long that will last, with usership quickly approaching a billion.
Facebook targeted the company just two-months before it hit the 500 million user mark. Both companies aren’t commenting on the closing of the deal, probably content to let the SEC filing stand as the sole comment on the matter.