The Bizaro world is now in full swing, with Facebook announcing a $2 billion deal with Alphabet’s Google.
Facebook is paying a $1.5 billion dividend to the company, which is being acquired by Alphabet, in what could be one of the most significant tech deals ever.
Facebook’s stock, which has gained about 10 per cent in the past 12 months, rose 0.5 per cent to $1,265.53 at 8:00am (AEST) on Friday morning.
“It’s a huge deal,” Facebook CEO Mark Zuckerberg said.
Alphabet is paying Facebook a $25 billion cash dividend, which it will use to fund its acquisition of the company in 2021. “
We can build an amazing community on this, and that’s what we want to do.”
Alphabet is paying Facebook a $25 billion cash dividend, which it will use to fund its acquisition of the company in 2021.
It will also have to pay Facebook a further $1 billion to acquire the remaining 20 per cent of the stock.
“I’m really excited about the future,” Mr Zuckerberg said on Friday.
Mr Zuckerberg added that the deal would help build “the most awesome world on Earth”. “
The future is really bright, and the future is a really exciting place.”
Mr Zuckerberg added that the deal would help build “the most awesome world on Earth”.
“It’ll be the biggest merger in history,” he said.
The deal was announced by Facebook’s chief executive Mark Zuckerberg during a keynote speech at the company’s annual shareholders meeting.
The company’s share price has climbed from about $16 to over $19 since the deal was revealed.
Mr Zuckerberg also confirmed that he had met with Alphabet CEO Sundar Pichai and Chief Technology Officer Lila Lo.
He said he and the pair had “talked a lot about how to do this.”
Mr Pichay said Facebook would have to use some of the $1bn to buy back shares of Facebook and its other businesses, and said the company was in talks with the Federal Government about a similar deal.
“At the moment we’re talking to our regulatory advisers about this,” he told reporters.
“When we have more information, we’ll announce it.”
Facebook also said that Alphabet’s acquisition of WhatsApp, the app that allows users to create private messages, would be made possible.
“That deal is the largest in history, by a wide margin,” Mr Pert said.
WhatsApp has been a key platform for Mr Zuckerberg’s social media efforts, helping him build the Facebook Messenger app, which he also uses to make his calls.
Alphabet is reportedly also interested in acquiring WhatsApp’s technology and data.
Alphabet was acquired for $3.6 billion in December.