Facebook Is Buying Huge Messaging App WhatsApp For $19 Billion!

Facebook set aside another $3 billion in restricted stock units to be granted to WhatsApp’s founders and employees that will vest over the next four years.

WhatsApp calls itself "a personal real-time messaging network allowing millions of people around the world to stay connected with their friends and family."

Basically, it's a text-messaging replacement.

Analyst Benedict Evans says that WhatsApp may actually be bigger than text messaging. The company says it has more than 450 million monthly active users worldwide and over 320 million daily active users. 

The app is free to install, and then users pay $.99 every year.

In a note to users, Jan Koum, WhatsApp’s co-founder and CEO, says: "Here’s what will change for you, our users: nothing." 

"WhatsApp is on a path to connect 1 billion people," says Facebook CEO Mark Zuckerberg. "The services that reach that milestone are all incredibly valuable. I've known Jan for a long time and I'm excited to partner with him and his team to make the world more open and connected."

WhatsApp has never had ads (or gimmicks) and Koum says that will continue.

Koum founded WhatsApp with Brian Acton almost five years ago. Both are former Yahoo engineers.

WhatsApp has taken little outside investment — only $8 million from Sequoia. As of December 2013, WhatsApp only employed 50 people, most of whom are engineers. Their company does all its development in Russia, where there is cheap talent.

WhatsApp posted a note about acquisition on its company blog:

Almost five years ago we started WhatsApp with a simple mission: building a cool product used globally by everybody. Nothing else mattered to us.

Today we are announcing a partnership with Facebook that will allow us to continue on that simple mission. Doing this will give WhatsApp the flexibility to grow and expand, while giving me, Brian, and the rest of our team more time to focus on building a communications service that’s as fast, affordable and personal as possible.

Here’s what will change for you, our users: nothing.

WhatsApp will remain autonomous and operate independently. You can continue to enjoy the service for a nominal fee. You can continue to use WhatsApp no matter where in the world you are, or what smartphone you’re using. And you can still count on absolutely no ads interrupting your communication. 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.