Facebook Acquisition

Presented By:
Wajiha Asad

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Introduction History Timeline

Contents

Financial Report
WhatsApp Facebook Acquisition Why do Facebook Acquire WhatsApp ? WhatsApp Future

Introduction
Facebook is a social networking website that is privately owned by Facebook, Inc.

Facebook was founded on February 4, 2004 by Mark Zuckerberg with his college roommates & fellows from Harvard University.
Membership was initially restricted to students of Harvard University. Headquarters in Palo Alto, California, Dubai and Ireland.

Cont
Mark Zuckerberg (Chairman & CEO) and Sheryl Sandberg (COO). Facebook is available in 70 Languages. Facebook is ranked as the World most widely used social network.

Facebook Timeline
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October Facemash Created for Harvard Students

May/Aug Facebook network expand to 800 students Acquire Facebook.c om Domain

Oct/Nov Microsoft purchase 1.6% share & Launch Facebook Ads

Aug/Dec Facebook acquire Friend Feed Facebook active 350 M Users

July/ Sept Partner with Skype & Facebook allows people to subscribe

April/Nov Launch New Timeline. Buy Snapchat.

2003 | 2004| 2005| 2006| 2007| 2008| 2009| 2010| 2011| 2012| 2013
Feb/Mar/June Launched The Facebook & Stanford, MIT, Yale & Columbia were added. Receives its first investment $500,000

Sept Facebook Opens to all users age 13 & older. Launched News Feeds

Aug/Oct Facebook active 100 million Users. Setup HQ in Dublin, Ireland.

June/July Add Like Button. Facebook active 500 million more Users

October Facebook active 1 billion more Users

Financial Report
Income Statement
2009
Sales/ Revenue Sales Growth Gross Income Expense Research & Development 777M 554M 292M 87M

2010
1.97B 154.05% 1.48B 449M 144M

2011
3.71B 87.99% 2.85B 1.1B 388M

2012
5.09B 37.13% 3.73B 3.19B 1.4B

2013
7.87B 54.69% 5.97B 3.05B 1.42B

Balance Sheet
2009
Total Assets Assets - Total Growth Total Liabilities Total Equity 1.11B 241M 868M

2010
2.99B 169.61% 828M 2.16B

2011
13.79B 361.07% 1.43B 12.35B

2012
15.1B 9.55% 3.35B 11.76B

2013
17.9B 18.49% 2.43B 15.47B

WhatsApp
Jan Koum (CEO and Co-Founder) & Brian Acton (Co-Founder)

Developed by WhatsApp Inc. on Feb 24, 2009.

WhatsApp support Android, BlackBerry, iPhone, Nokia, and Windows smartphones. Ad-Free & users pay $.99 every year No additional charge for SMS messages. 450 million active users per day & connect 1 billion people.

Facebook Acquisition
Facebook brought WhatsApp for US $ 19 Billion on Feb 19, 2014. Facebook largest Acquisition ever. Facebook paid $4 billion in cash , $12 billion

worth of shares for WhatsApp.

Additional $3 billion in restricted stock units.

Zuckerberg says WhatsApp :

An Incredibly Valuable service connecting 1 billion people.

Deal over Chocolate Covered Strawberries

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Why do Facebook Acquire WhatsApp?

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User Growth
WhatsApp

Teenage User Focus is mobile Global Reach Photos Sharing Advertisement Profitable

450 Million Users

500 Million Picture Sharing 1Million new registered users per day

70% - proportion users active per day

19B messages sent per day 34B messages received per day $2bn Break Fee (deal fails to get through)

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WhatsApp Future
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WhatsApp operate as independent company and retain its brand.

It stays Ad-free, No games.

Remain 0.99 dollars subscription fee (First Year). Jan Koum as Executive & member of Facebook's Board of Directors.

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Thank You!!!

References
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http://www.theguardian.com/technology/2014/feb/19/faceb ook-buys-whatsapp-16bn-deal http://techland.time.com/2014/02/20/facebooks-whatsappacquisition-explained/ http://www.theverge.com/2014/2/19/5427332/facebook-isbuying-whatsapp http://www.businessinsider.com/the-story-of-facebookswhatsapp-buy-2014-2#ixzz2uFCrEGUB http://www.bbc.co.uk/news/business-26266689 http://trak.in/tags/business/2014/02/20/5-reasons-facebookacquired-whatsapp/ http://www.ibtimes.com/whatsapp-worth-19-billion-6-reasonswhy-facebook-purchased-mobile-messaging-app-1557026