Facebook said Wednesday that it has agreed to acquire WhatsApp in a $16 billion cash and stock arrangement with the popular messaging application's parent company. The announcement was made in a filing with the Securities and Exchange Commission.


The deal for WhatsApp includes 183,865,778 shares of Facebook stock, valued at $12 billion, along with $4 billion in cash. Once the acquisition closes, Facebook has promised to grant 45,966,444 restricted stock units (RSUs) to WhatsApp founders and employees, tacking on an additional $3 billion in value to the deal. The additional RSUs will vest over four years following closing.

WhatsApp has 450 million monthly active users, more than 70 percent of whom are active on a daily basis, Facebook said in a press release. The service is also adding 1 million new registered users per day. The application will, much like Instagram, remain independent from its new parent company.

"You can continue to use WhatsApp no matter where in the world you are, or what smartphone you're using," Koum said. "And you can still count on absolutely no ads interrupting your communication. There would have been no partnership between our two companies if we had to compromise on the core principles that will always define our company, our vision and our product."