Google made last-ditch effort to block WhatsApp-Facebook deal, was willing to pay more than $19B
As talks between Facebook and WhatsApp began to draw to a close, Google Chief Executive Larry Page made a last-ditch effort to block the deal, and was even willing to outdo the $19 billion agreement the messaging app eventually reached with Facebook.
Additional inside details on the Facebook-WhatsApp deal were revealed on Thursday by The Information, which cited three unnamed sources involved with the deal. Those people reportedly said that Google was willing to top Facebook's $19 billion deal, as the search giant was apparently extremely eager to bring WhatsApp under its own umbrella.
Page also made a last-minute effort to WhatsApp Chief Executive Jan Koum, offering him the ability to keep his company independent and continue competing with Facebook while using Google's deep pockets.
The sales pitch by Page wasn't enough, as WhatsApp officials reportedly felt that it was Facebook, not Google, that would allow them to operate more independently. WhatsApp executives also reportedly felt they had more of a "shared vision" with Facebook than Google.
Facebook Chief Executive Mark Zuckerberg's own pitch to WhatsApp included offering Koum a seat on his company's board of directors. Zuckerberg also reportedly told WhatsApp that he was interested in diversifying his company's business model, which currently relies almost entirely on advertising. WhatsApp charges users 99 cents per year to access its messaging services.
The talks with both companies apparently left officials at WhatsApp feeling as though Google was only interested in their company in order to keep it out of the hands of Facebook.
The new details suggest that Google upped its offer for WhatsApp after it learned how much Facebook would eventually pay for the startup. Another report from earlier Thursday claimed that Google had bid $10 billion for the company.
Google was also said to have made an "odd" offer to WhatsApp, paying as much as millions of dollars just for the right to be notified of if and when it entered into acquisition talks with other companies. The so-called "right of notice" offer to WhatsApp was allegedly made months ago, but was rejected by the service.
Nearly a year ago, Google was rumored to be well into negotiations with WhatsApp, and was allegedly considering a $1 billion price tag for the cross-platform messaging app. At the time it was claimed that the WhatsApp team was playing "hardball" in negotiations with Google.
Facebook announced on Wednesday that it will buy WhatsApp for $16 billion in initial cash and stock, plus $3 billion provisioned for restricted stock units. The deal breaks down to about $4 billion in cash and $12 billion worth of Facebook shares.
"WhatsApp is on a path to connect 1 billion people. The services that reach that milestone are all incredibly valuable," Zuckerberg said in a statement. "I've known [WhatsApp founder Koum] for a long time and I'm excited to partner with him and his team to make the world more open and connected."
Additional inside details on the Facebook-WhatsApp deal were revealed on Thursday by The Information, which cited three unnamed sources involved with the deal. Those people reportedly said that Google was willing to top Facebook's $19 billion deal, as the search giant was apparently extremely eager to bring WhatsApp under its own umbrella.
Page also made a last-minute effort to WhatsApp Chief Executive Jan Koum, offering him the ability to keep his company independent and continue competing with Facebook while using Google's deep pockets.
The sales pitch by Page wasn't enough, as WhatsApp officials reportedly felt that it was Facebook, not Google, that would allow them to operate more independently. WhatsApp executives also reportedly felt they had more of a "shared vision" with Facebook than Google.
Facebook Chief Executive Mark Zuckerberg's own pitch to WhatsApp included offering Koum a seat on his company's board of directors. Zuckerberg also reportedly told WhatsApp that he was interested in diversifying his company's business model, which currently relies almost entirely on advertising. WhatsApp charges users 99 cents per year to access its messaging services.
The talks with both companies apparently left officials at WhatsApp feeling as though Google was only interested in their company in order to keep it out of the hands of Facebook.
The new details suggest that Google upped its offer for WhatsApp after it learned how much Facebook would eventually pay for the startup. Another report from earlier Thursday claimed that Google had bid $10 billion for the company.
Google was also said to have made an "odd" offer to WhatsApp, paying as much as millions of dollars just for the right to be notified of if and when it entered into acquisition talks with other companies. The so-called "right of notice" offer to WhatsApp was allegedly made months ago, but was rejected by the service.
Nearly a year ago, Google was rumored to be well into negotiations with WhatsApp, and was allegedly considering a $1 billion price tag for the cross-platform messaging app. At the time it was claimed that the WhatsApp team was playing "hardball" in negotiations with Google.
Facebook announced on Wednesday that it will buy WhatsApp for $16 billion in initial cash and stock, plus $3 billion provisioned for restricted stock units. The deal breaks down to about $4 billion in cash and $12 billion worth of Facebook shares.
"WhatsApp is on a path to connect 1 billion people. The services that reach that milestone are all incredibly valuable," Zuckerberg said in a statement. "I've known [WhatsApp founder Koum] for a long time and I'm excited to partner with him and his team to make the world more open and connected."
Comments
Do we really need so many articles about something uninteresting and irrelevant?
Today's $billion stock swaps are tomorrow's $billion write-downs. Enjoy it while you can.
Such a large purchase price and a competition for it by two of the most well known internet-based companies today makes that news I want to hear about even though I have never had nor expect to have any interest in the app itself.
I do not care how they spin this, the ROI or NPV on this purchase is negative in any time period. Most time you want the time horizon to be in the 7 to 10 yrs time period, but in the internet age we talking 3 to 5 yrs if you investment can not turn positive in that time frame it is not worth doing.
Also keep in mind Steve was whispering in Marks ear , and Mark is just another Steve follower who is helping to wage war on Google. As well as Larry form Oracle, and M$, Google is being battled on many fronts, Steve know how to wage a war,
It has nothing to do with your intelligence, it's your age.
Agree.
The Facebook Android app has permission to read sms. If they can also have similar permissions to WhatsApp messages, how do you value That long term?
I still feel like I should be able to see how something can valuable to others even if I don't personally have an interest in it. I know how Barbies and Transformer toys can hold value and I know how these compressive MMORPG and FPS games are profitable and popular even though I don't engage in them myself.
Apple should buy Facebook and shutdown it down for the good of humanity!
Sequoia Capital should be irked about that alleged higher figure coming from Google...
iMessage for Android would literally be a killer app.
This is a big opportunity for Apple.
iMessage for Android would literally be a killer app.
I agree. Apple did that with iTunes and Windows & the iPad took off!
I don't know what is stopping them from expanding iMessage.
FaceTime would also be great to use with other phones, but I can see where Apple would have problems getting it to work on all of the possible configurations of Android.
How is this worth that kind of money, and how can Facebook not bring similar functionality for much, much, much less?
You my friend are brilliant !
If they really wanted WA, then why didn't Goog just offer up the $16B back then? Now it just looks like they got scooped. Again.
You've mentioned things that were popular when we were younger, and easy to see the value. It seems like every time I find out whatever is popular these days it's already on the way down and the younger generation has moved on to something else.
Well thank you. I do get the occasional epiphany