The Biggest Mergers And Acquisitions Of 2014 Essay

1465 Words Dec 4th, 2015 6 Pages
This is one of the biggest mergers and acquisitions of 2014. Facebook (FB) bought WhatsApp (WA) for $21.8 billion. Facebook has a reputation for heading and grabbing acquisitions, but no deal it did in 2014 generates as much heat and light as its purchase of WA. Facebook offered $4 billion in cash and $12 billion in stock, with the company’s founders eligible for an additional $3 billion in restricted stock. The final total came in at $21.8 billion. This acquisition First, we are going to check how each company is doing in terms of capital. Second, we are going to see how this merge will increase consumer benefits. This merger not only benefit the consumers but also purchasing WA will deliver clear business benefits for FB. FB is going to get data on million of users, this represents a great opportunity for FB to grow even more, and also will be able to benefit from the brand value of WA.

Facebook takes this expensive investment because WhatsApp, which is a free text message service is about twice as large of the user base as Twitter Inc. True, Twitter’s market value has since fallen to $23 billion from $26 billion at the time of the FB deal, but it’s too soon to call this move a failure. Mark Zuckerberg was so fascinated with WA because he was very confident that he was going to reach 1 billion users in no time. WA growth rate is faster than FB, Instagram, Skype or Gmail. WA had 450 million users at the time FB acquired WA and the 70% of its users come back every day…

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