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Facebook closes $19B understanding for WhatsApp

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Facebook has betrothed that WhatsApp will sojourn a apart entity.
CNET

Facebook now strictly owns messaging app WhatsApp.

On Monday, a amicable network confirmed a shutting of a deal in a ask filed with a US Securities and Exchange Commission. The ask confirms that WhatsApp will live on as a unconditionally owned auxiliary of Facebook and that WhatsApp co-founder and CEO Jan Koum will turn a member of Facebook’s house of directors.

On Feb 19, Facebook suggested that it planned to compensate $19 billion in money and batch to acquire a renouned messaging app, a largest understanding in a company’s history. As partial of a try to win regulatory approval, Facebook betrothed that WhatsApp would sojourn a apart entity. The understanding still raised remoteness concerns from a Federal Trade Commission.

Though a FTC postulated approval, a group cautioned both Facebook and WhatsApp to continue WhatsApp’s process of not collecting usernames, locations, email residence or other data, and that a association not share users’ phone numbers with third parties.

Facebook CEO Mark Zuckerberg and Koum betrothed that WhatsApp’s remoteness policies would stay a same. But a FTC pronounced it would keep a sharp eye on a dual only to be sure.

“Hundreds of millions of users have entrusted their personal information to WhatsApp,” Bureau of Consumer Protection Director Jessica Rich told Facebook and WhatsApp in a minute in April. “The FTC staff will continue to guard a companies’ practices to safeguard that Facebook and WhatsApp respect a promises they have done to those users.”

WhatsApp did not immediately respond to a ask for comment.

In contrast, a understanding probably sailed by regulatory capitulation from a European Commission, that didn’t concentration on privacy-related issues and instead dealt some-more with a intensity foe acted by Facebook Messenger and WhatsApp.

“While Facebook Messenger and WhatsApp are dual of a many renouned apps, many people use some-more than one communications app,” European Competition Commissioner Joaquin Almunia pronounced in a matter final week. “We have delicately reviewed this due merger and come to a end that it would not bushel foe in this energetic and flourishing market. Consumers will continue to have a far-reaching choice of consumer communications apps.”

The EC called a area of mobile messaging a energetic marketplace and cited several competing products, such as Line, Viber, iMessage, Telegram, WeChat and Google Hangouts. And that marketplace continues to infer appealing to companies who wish a interest in a action. Yahoo pronounced final Friday that it acquired MessageMe, a use identical to WhatsApp, and it’s reportedly in talks to deposit in a renouned messaging app Snapchat.

Facebook shares are down around .3 percent to $77.20 on Monday morning.

Article source: http://www.cnet.com/uk/news/facebook-closes-19-billion-deal-for-whatsapp/

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