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WhatsApp, Zuck? Facebook finally finishes $22bn upstart gobble

Jan Koum and Brian Acton are now officially obscenely wealthy

By Shaun Nichols, 7 Oct 2014

Having secured the blessing of European regulators, Facebook has completed its $21.8bn acquisition of WhatsApp.

The company on Monday finalized with the US Securities and Exchange Commission that the deal, which adds up to about $50 per user account, has now been finished, complete with a $4.59bn cash payout to WhatsApp stakeholders.

The rest of the money, says Facebook, will be doled out in the form of FB stock awards to WhatsApp shareholders and employees.

In other words, a handful of folks in Silicon Valley – notably founders Jan Koum and Brian Acton – are now officially very, very wealthy.

The closing of the deal has been seen as a foregone conclusion since late last week when the EU gave permission for the merger to go through following a lengthy examination.

Facebook won approval for the deal in the US earlier this year and CEO Mark Zuckerberg has been undertaking an international charm offensive to get regulators to let the deal go through.

With the transaction now officially complete, WhatsApp will be absorbed into Facebook. Koum will be appointed to the company's board of directors with a salary of $1. Don't feel too bad for Koum; the meager salary comes on the back of a stock package and $1.97bn cash payout. ®

The Register - Independent news and views for the tech community. Part of Situation Publishing