Facebook Inc (NASDAQ FB) has decided to extend the close of the WhatsApp deal by one year, according to a report from Reuters. The social networking site has agreed to pay a whopping $19 billion to acquire instant messaging app WhatsApp.
Facebook has extended the closing date of the WhatsApp deal by another year from August 2014 to August 2015. WhatsApp will receive $1 billion in cash and $1 billion in Stock options in case it could not conclude the deal in time. The social networker informed that the deal is dependent on customary closing conditions.
Facebook said that WhatsApp as a brand will not be affected by the acquisition, which happens to be the biggest so far. Facebook will pay $12 billion worth of Facebook shares, $4 billion in cash and $3 billion in restricted Stock and in exchange will add 450 million users of WhatsApp.
Facebook Inc: Facebook-WhatsApp Deal
In a filing last week, Facebook said that the closing date will be August 19, 2015 if the closing conditions as on August 19, 2014 are satisfied. Facebook, also, said that the termination fee to WhatsApp of $1 billion in cash and shares of Class A common stock equal to $1 billion, based on average closing price of the ten trading days before such termination, will be paid, if the deal is not concluded by August 19, 2014.
The filing further said, “We currently expect these conditions will be satisfied and that we will extend the date to August 19, 2015.” In its filing, the company, also, said that the US Securities and Exchange Commission (SEC) had discontinued its investigation in the social networking company related to the controversial initial public offering.
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Facebook Inc (NASDAQ FB) Business News
According to Facebook, the regulators have conveyed in May that it had closed its inquiry, and no enforcement action has been recommended by the SEC. The shares of the social networking site started trading on May 18th 2012, but dropped below its $38 per share offering price and lost more than half its value by the middle of August, disappointing the investors.
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