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Facebook reveals financial details of WhatsApp acquisition
By Hafeez Sim - on 29 Oct 2014, 9:50am

Facebook reveals financial details of WhatsApp acquisition

Facebook has revealed the financial details about its US$22 billion acquisition of WhatsApp, where US$2.026 billion was spent on the user base, US$448 million for the brand, US$288 million for the technology and US$21 million for other expenses. Facebook considers the remaining US$15.314 billion spent as a goodwill gesture.

WhatsApp's figures for the first six months of 2014 aren't impressive, with the messaging app bringing in a revenue of US$15.921 million. There were reported losses though, with share-based compensation expenses and issuance of common stock below fair value costing the company US$206.5 million. In contrast, the company's operating expenses only amounted to US$13.5 million. With WhatsApp's large user base (it has surpassed 600 million monthly active users), Facebook hopes to monetize the service once the messaging app overshadows its competitors to be the top international messaging app. 

Source: TechCrunch


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