Facebook has announced it has closed the deal on its acquisition of messaging giant WhatsApp. The deal’s price tag, originally announced for $19 billion, has jumped to $21.8 billion due to Facebook’s rising stock price over the last several months.
As WhatsApp officially joins the Facebook fold, WhatsApp founder Jan Koum has joined Facebook’s board. He will also be paid just $1 per year like Facebook CEO Mark Zuckerberg, according to filings, but has been given a very hefty purse of Facebook shares to hold on to.
Koum has an “inducement grant” of stock currently worth $1.9 billion if he stays with the company for the next four years.
Facebook is likely to operate WhatsApp as an independent entity, much like they have previous acquisitions Instagram and Occulus. “There would have been no partnership between our two companies if we had to compromise on the core principles that will always define our company, our vision and our product,” Koum said when the deal news broke months ago.