Facebook closes Whats App deal

Facebook Inc. welcomed Whats App to its family Monday as the Silicon Valley social media company closed its $ 21.8- billion purchase of the popular chat app.

First announced in February, the deal set a stunning high- water mark for an acquisition of a venture-capitalbacked technology startup. Facebook paid about $ 13.7 billion in stock and $ 4.59 billion in cash. It’s also awarding $ 3.5 billion in restricted stock to Whats App employees, including nearly $ 2 billion to co- founder and Chief Executive Jan Koum and $ 1 billion to co- founder Brian Acton. Whats App is set to remain a separate unit from Facebook’s core social network.

Koum, who is accepting the same $ 1 salary as Facebook Chief Executive Mark Zuckerberg, joined Facebook’s board of directors lastweek.

In April, Whats App said it had 500 million “regular, active” users with growing numbers from Brazil, Russia, India and Mexico.

Whats App charges users $ 1ayear to use the service after a 1- year trial and has pledged to avoid ads and gimmicks.

In February, Zuckerberg called Whats App the only popular app to have produced stronger engagement with users than Facebook itself. While future development plans haven’t been announced, he recently said it would take years before Whats App became a “huge” business for Facebook.