In 2014 Facebook acquired WhatsApp in one of the largest technology takeovers of its time, reshaping the messaging landscape and raising major questions about scale, privacy and platform strategy.
The deal amount and closing
Facebook completed the acquisition of WhatsApp for approximately $19 billion, a valuation widely reported at the deal’s closing and noted as one of the largest purchases in the tech industry at the time.
Founders and origins
WhatsApp was founded in 2009 by Jan Koum and Brian Acton, two former Yahoo! employees who built the app around a simple, reliable messaging concept that grew rapidly in global popularity.
Deal structure and terms
The acquisition announced earlier in 2014 was structured with a mix of cash and Facebook stock and included additional restricted stock units for WhatsApp’s founders and employees that would vest over time, reflecting both an immediate payout and long‑term retention incentives.
Impact and significance
The purchase strengthened Facebook’s dominance in mobile messaging and prompted wide discussion about market concentration, data privacy and the future of encrypted messaging, as WhatsApp continued to operate largely independently while integrating into Facebook’s broader corporate strategy.
Legacy
The Facebook‑WhatsApp deal remains a landmark acquisition for its scale and strategic implications, influencing how major platforms pursue user growth through large‑scale buyouts and how regulators and the public evaluate the effects of consolidation in digital communications.