The paper "Merger, Acquisition, and International Strategies" is a wonderful example of an assignment on business. Facebook is a company that is specialized in social networking whose establishment in 2002 has substantially transformed the industry. Notably, each of the acquisitions by the company has led to the company’ s in question being taken wholly. The social networking giant has witnessed each date of completing the transaction being the date of acquisition. The value of Facebook acquisitions such as the latest one involving WhatsApp is normally stated in United States dollars since the mother company's head offices are in the country.
In the event that the Facebook package that forms the basis of the acquisition by the firm is clear, then it is normally spelled out properly. Facebook has successfully acquired several companies, but the latest acquisition of WhatsApp through purchase is the biggest, in which the former owner of WhatsApp received about $40 per WhatsApp account holder. In total, Facebook paid USD 19 billion for the acquisition completed in the first quarter of 2014 (Berold, 2014). WhatsApp will operate as an independent unit within the social networking giant, with its entire workforce forming part of the transaction.
Facebook (FB) was expected to settle WhatsApp $4 billion in liquid cash and $12 billion in shares. Under the deal, WhatsApps owners and employees would be entitled to a further $3 billion in share grants payable if they remained Facebook employees for a period of four years. Jan Koum, WhatsApp’ s chief executive, was guaranteed placement on the Facebook company board. Facebooks acquisition of WhatsApp was primarily a talent acquisition and the obtained products might be shut-down if they become unproductive (Kevin, 2014).
Facebook’ s, chief executive, Mark Zuckerberg termed the move a strategy of not buying a corporation for the firm, but rather buying the company to get the excellent people working for it. Facebook is well within the investment culture in its acquisition of entrepreneurial minds and culture as evident in the employees of the acquired firm. By succeeding in the acquisitions, Facebook actually managed to acquire a great firm with profoundly skilled employees, founders, and corporate culture.
Berold, K. (3/6/2014). “Why WhatsApp is good for Facebook's business.” Finweek, 36-37.
Kevin S. (2/21/2014). “Facebook Gets Much Support For Huge $19 Billion Acquisition.” Investors Business Daily, A04.
Pack, T. (2014). “How to Become a TaskRabbit-Or Hire One.” Information Today, 31(1), 38.
Sacks, D. (2013). “The Purpose-driven Startup.” Fast Company, 177, 92-106.