· The $19.5bn offer to buy mobile messaging app WhatsApp is Facebook’s largest acquisition of all time, dwarfing the $1.0bn it paid for Instagram in 2012.
· The deal is the 5th largest technology deal of all time. It pushes worldwide announced M&A activity in the technology sector to $42.4bn so far during 2014, up 39% over the same period last year for the highest year-to-date level since 2000 ($79.6bn).
· The deal is the 7th mega deal ($10bn+) to be announced so far this year and boosts worldwide announced M&A to $467.5bn, up 48% from last year at this time and only $2.2bn shy of levels seen in 2007, before the financial crisis.
· JP Morgan leads the 2014 worldwide announced M&A financial advisor ranking with $145.5bn for a 31% share, followed closely by Morgan Stanley with $145.3bn. The Facebook / WhatsApp deal boosts Allen & Co up 2 places from 11th to 9thposition.
· Based on early fee estimates, Allen & Co could earn $32m-$41m for advising Facebook, while WhatsApp advisor Morgan Stanley could earn $35m-$45m on the $19.5bn deal.
image: © West McGowan