Thursday 20 February 2014

Breaking News! SSS detains, seizes Sanusi’s passport

Officials of the State Security Service, SSS, have seized the travelling documents of suspended Governor of the Central Bank of Nigeria, Sanusi Lamido Sanusi, shortly after he arrived Lagos from Niger, where he had gone to attend a meeting of governors of central banks in the West African sub-region.
Shortly after his plane landed at the ExecuJet Terminal of the Murtala Muhammed International Airport in Lagos, he was accosted by plain clothe operatives who detained him briefly and insisted he must surrender his passport.

They also insisted that he would not be allowed to leave the airport until the Lagos state director of the SSS arrives.
But after a while, the operatives had a change of heart after communicating with their superiors. The CBN governor was allowed to leave but only after his passport was confiscated.
PREMIUM TIMES had earlier exclusively reported the plans to arrest Mr. Sanusi on his return to the country from neighbouring Niger.

The governor was suspended in absentia, while attending a three-day meeting of the West African Central Bank Governors.
The embattled governor had himself became aware of the plan to arrest him, compelling him to change his travel plans. He landed in Lagos instead of Abuja.
In Lagos, Mr. Sanusi’s associates and friends, led by a former Minister of the Federal Capital Territory, Nasir El-Rufai, were on hand to receive him at the airport.
They drove out of the airport in a convoy heading towards Ikoyi. A member of the delegation said Mr. Sanusi was heading to a friend’s place to relax.

Earlier today, the President ordered the immediate suspension of Mr. Sanusi from office, saying his tenure had been characterized by various acts of financial recklessness and misconduct inconsistent with the administration’s vision of a Central Bank propelled by the core values of focused economic management, prudence, transparency and financial discipline.

However, many Nigerians believe the CBN governor was axed because he exposed the Nigerian National Petroleum Corporation, NNPC, as an harbinger of corruption and financial mismanagement, diverting huge federal revenues accruing to the nation from the sale of crude oil.
Mr. Sanusi says as much as $20 billion oil money is missing.
The President, in a statement by Reuben Abati, his Special Adviser on Media and Publicity, ordered the Central Bank governor to hand over to the most senior Deputy Governor of the bank, Mrs. Alade who will serve as Acting Governor until the conclusion of ongoing investigations into alleged breaches of enabling laws, due process and mandate of  the Central Bank.

Culled from Premium Times

Two things men should seek after vehemently...

From the beginning of the creation of the world till now, men have been able to transform their total existence from one state to the other. However it seems, creativity is creativity... whether negative or positive.
Human beings are made to make things. In order words, they are created to create. No matter how horrible looking - the complexion, lifestyle, look, thought pattern, conduct and all,there are varieties in creativity.

But in all this, two things will stand you out.
1. Don't go after money instead go after skill    
2. Your attitude determines your altitude.

Money is a means of exchange of goods and services. When men go after money vehemently, it may lead to negative occurrences. What men should seek after are the virtues that will attract money with little effort from the carrier. No organization is interested in mediocre, they run after those who possess valuable skills. think about this always. Do you have skills employer are looking for? Do you possess the creativity service providers, organizations, government agencies, and educational institutions are looking for?


Your attitude will determine your longevity in relationships, workplace, and other places and instances, No matter how skilled you are, your attitude will determine everything about you.

Take note of these two. Seek knowledge and possess it, share your knowledge with respect, honesty, purpose and sincerity. Dont be boastful or proud. Be humble before all and accord respect as when due to those due for it.

After all, you can have trust in your friends and enemies also.www.facebook.com/adedeji.oladapo

184 Million Africans at Risk for Malaria

184 Million Africans at Risk for Malaria

In this Dec. 21, 2005 file photo, a mother gently places her son in a basket as she takes him to a Medecins Sans Frontieres clinic after he contracted malaria, in Lankien, Southern Sudan. (AP Photo/Karel Prinsloo, File)
In this Dec. 21, 2005 file photo, a mother gently places her son in a basket as she takes him to a Medecins Sans Frontieres clinic after he contracted malaria, in Lankien, Southern Sudan. (AP Photo/Karel Prinsloo,

New research shows that after 10 years of intensified campaigns against malaria 184-million people in Africa still live in moderate to high-risk areas. While the number is high, it’s down from nearly 220-million in 2000 when anti-malaria efforts began to increase.

The findings are based on thousands of community-based surveys in 44 African countries and territories. These are places where malaria has been endemic.

Dr. Abdisalan Noor, co-leader of the team that conducted the research, said, “What we are looking at, first of all, is to try and estimate the level of infection with malaria in African communities. This doesn’t necessarily mean the number of people who die of malaria, but the proportion of people who are likely to carry the most virulent type of the malaria parasite. That’s Plasmodium falciparum.”

Noor and co-leader Professor Robert Snow are with the Kenya Medical Research Institute-Wellcome Trust Research Program. The team also included researchers from Oxford University and the World Health Organization.

The study reflects the effects of the Roll Back Malaria campaign and other programs. The campaign brought together many multi-lateral, private and non-governmental organizations. The goal was to cut in half the number of deaths from malaria by 2010. It had a shaky start and was criticized in its early years for a lack of progress.

Dr. Noor said that the new study finds a mix of good and bad news about efforts to combat malaria.

“The positive news is there has been production in 40 of the 44 African countries for which we were able to estimate change. There has been some reduction in the proportion of people who are likely to be affected with the falciparum parasite. About 218-million people in 2010 lived in areas where transmission – malaria transmission – had dropped by at least one level of endemicity. So that’s good news.”

Endemicity is described as the measure of disease prevalence in a region.

“The other side of it.” said Noor, “is that despite all these gains almost 60 percent of African populations still live in areas where more than 10-percent of the population is likely to carry the malaria parasite. And out of these about 184-million people live in areas where more than 50-percent of the population are likely to carry malaria infections.”

Among the countries where disease transmission remained high or unchanged are DRC, Uganda, Malawi and South Sudan.

Despite the large number of people still likely to be infected, Noor says he does not want to detract from the gains made by the international community – namely, the reduction in risk for 34-million people from 2000 to 2010.

“We haven’t actually looked at the reasons why some places are more resilient to change than others. Epidemiologically, it’s got something to do with the higher the starting transmission, the longer it takes to bring down the disease,” he said.

Another reason, he said, may be weak health care systems in many countries. It can be difficult to get reliable estimates on how many people get sick or die from malaria. Noor says stronger health care systems would play a major role in reducing infection risk.

In the 10-year period studied, funding for malaria programs steadily increased from 100-million-dollars to two-billion dollars a year.

He said, “It’s no news that despite all this investment we need more. I think the estimate for the needs for malaria control in Africa is around five-billion dollars if we look at the last global malaria action plan.”

Noor said that there’s a lot to be proud of in the global community in terms of reducing malaria cases.

He added that despite a recent global recession -- and competing priorities -- resources for malaria campaigns should not only be sustained, but increased. That would help bring malaria to a point where, he said, it would be of “minimal public significance.”

Right now, though, the Roll Back Malaria campaign estimates a child dies every 60 seconds from the disease.

NNPC and the $20Billion oil revenue

 

Nigerian Senate Orders Audit of Unaccounted $20 Billion in Oil Revenue

One on One with Abike Dabiri

I miss television; it’s the best job in the world–Abike Dabiri

I miss television; it’s the best job in the world–Abike Dabiri
Former TV girl, Hon. Abike Dabiri- Erewa was quite popular in Nigeria before she joined politics. She was a journalist with the Nigerian Television Authority (NTA) Lagos and she became famous with her innovative reportage on News line every Sunday, especially during the ‘MARY saga’ in 2008.Today, she is a legislator in the House of Representatives representing Ikorodu constituency in the National Assembly. In her second term in office she was appointed Chairman, House Committee on Diaspora Affairs, a new committee with the challenge of ensuring that Nigerians in Diaspora are integrated into developmental activities of their motherland. Recently, she was in Lagos to receive Ayoyemi Ajimatanrareje who is Miss Nigeria Florida. She spoke to CHRISTY ANYANWU.

You are a very busy person, why are you in this gathering today?
In things like this, where we have a Nigerian like Miss Nigeria Florida, what I think she has done is to celebrate the culture of Nigeria in America. That’s why one took time out to come and encourage her and people like her to continue to do what they are doing. You can see that she is giving back to the society with her title as Miss Florida. She’s not only propagating our culture in America, she is coming back to do things for the younger ones here in Nigeria. I’m very encouraged by what she is doing. At her age, she has done so much, any mother will be proud to have her around. So, she’s my adopted daughter.

What are your views about Nigerians in Diaspora?
There are Nigerians, especially our women that are amazing success stories even more than Americans. All we need to know is where our people are. We don’t have the data of our people in Diaspora. We are dealing with 16 million. We are supposed to have a database and then break them down in a way that it will be easy to locate Nigerians easily. So, let’s have a database, which is what we are trying to do right now. Even Ghana has it. You must know where your people are, and what they are doing. There is nowhere Nigerians are not extending, although you have a downside. You have Nigerians in jail for committing crime, for when 10 Nigerian

What are the challenges you have with Nigerians in Diaspora?
There are many challenges. The first one is that we have man Nigerians in trouble in many parts of the world. We just came back from South Africa, we have more than 409 Nigerians in South Af-rican prisons and some should not be there. If you commit a crime, you will be punished for it but when you did nothing, maybe you are just guilty by association, there is no trial and you are stigmatized. Really, I think Nigeria should intervene and we are pushing for that.  Second, we need to have a database of Nigerians in Diaspora to know exactly where our people are, what they are doing. We are talking about local content.
There is nowhere Nigerians are not excelling. That is just the truth. If you want Nigerian experts in any field in the world, you can always get them, but we need to encur-age a synergy between Nigeria and the Nigerians in the Diaspora. We plan to establish a Diaspora commission. Alone, 26 countries have a full-fledged Diaspora ministr. Yet, we have the largest number apart from Brazil that has the largest number of blacks outside Africa. The next number will be Nigeria. We need to have that commission so that when people like Miss Florida comes here, the commission knows she is here and the commission knows you are there, and they can work with you. It’s going to be a full-fledged commission wher you can now tap into enormous resources. These are the immediate basic things that I think should be tackled.

As part of your official duties, how do you feel when you are out there and found Nigerians doing all kinds of jobs?
I think the first thing is, lets tackle the cause, which is unemployment. We met a Mass communication graduate in prison in South Africa. When I heard him speak, I know he is well educated. He was looking for a job and someone invited him to South Africa. When he got there, there was really nothing there and he finds a way to survive and got into trouble. The first thing is, lets solve the problem of unemployment in this country. I know there is greed, I also know there is desperation. Some people were brought back from Libya, 24 of them. Four of them are graduates of University of Nigeria Nsukka. Ghadafi was going to kill them.

They went to look for jobs and they were actually working before they were arrested. So, we need to tackle unemployment. Government does not create jobs but government creates an enabling environment for jobs to be created. So, that has to be tackled. We are paying lip service and we are deceiving ourselves when we say we are creating jobs because we are not. I think that is the major thing. Again, a lot of awareness for the younger ones is necessary. Look at what she is doing. You can say she’s privileged but she could have been in America and gone into something else.  So, we need a lot of awareness for the younger ones to know that it might not be greener out there because some are there out of ignorance.
Take Cairo for instance, they have told the boys they are going to play football. They get there and there is no football to play.  Now they are already stuck there. The devil has a workshop for idle hands and they want to do this and that to make ends meet and they get into trouble. Basically, there is need for awareness and we keep saying that if you commit a crime, you will be punished for it. There are some that are defendable and we are glad that we have been able to prevent such.  We intervened in some and we succeeded. The next thing is to tap into these talents that are with Nigerians everywhere in the world. We have the best doctors in the world. In America, we have the best doctors that are Nigerians, and look at the state of our hospitals in Nigeria. A lot of things are happening, so we must have a Diaspora Commission. I hope we can, so that we won’t be left behind in Diaspora matters. There is going to be a regional summit sometime next year.

So, how do you cope? I mean juggling your work as a legislator and travelling back and forth the globe.
I think work is work. Whatever you are told to do, you just do it responsibly and ensure you put in your best. You are not going to work forever. You have to balance your family with your job, which is the most important challenge for a woman.

So, how do you spend your day?
The first thing is to pray. I’m a Muslim. The first thing I do is to pray in th morning and get to sleep again; I enjoy sleeping. Then get ready for work. I won’t say I have a typical day. Everyday is unpredictable, whether as a journalist or as a politician. But I always place my family first in whatever I do. Whatever I do, I will not sacrifice my family fo any other thing. I give them the priority. No point being successful in your career and not being able to raise successful children. I don’t have a structured day but the first thing is, you wake up an pry to your God for guidance till the rest of the day. And of course, as a woman, you must have to take care of yourself, do your spa, your facials, massage and relax.

Do you miss anything about your career as a journalist?
Of course, I miss television. Aah; I miss television, it’s the best job in the world. First thing I do is news. As am seeing you now, I’m wishing what I could do with you. I do miss it and I hope I will still do a few things in journalism, just for the fun of it.

What are your plans for 2015?
We take a step at a time. I’m a member of House of Representatives; I still have a lot of work to do. I have put in my best.

You dress nicely, what is the secret?
Regalia makes my outfit. I just wea what I feel suits me.

Culled from Sun Newspaper

Just a little rminder about the Owu striker

Breaking News: OBJ leaves PDP, says he cannot stand a wanted criminal as zonal party leader in the South-West


 

The season of letters continued on January 11, 2014, Saturday, as a new document from Olusegun Obasanjo has leaked the web.
In the new message OBJ narrates about his decision to withdraw activites in the ruling party, PDP.
The photocopy of the letter dated January 7, 2014, originally published by Nigerian Tribune has been republished below:
See the full message below:



January 7, 2014

Alhaji Bamanga Tukur,
National Chairman,
Peoples Democratic Party, PDP
National Headquarters,
Wadate House, Abuja

Dear Chairman,
While I believe that a good and truly national political party must be a microcosm of the nation in its membership made up of all sorts of characters from near-saints to near-satan, I also believe that on no account should a known habitual criminal that is wanted abroad to face criminal that is wanted abroad to face criminal charges leveled against him should be extolled as a political leader in a respectable and wholesome nation-building political party.
Buruhi Kasharnu has been so extolled in PDP in South-West geo-political zone which I personally find unsavoury. Politics played by any national political party must have morality, decency, discipline, principles and leadership examples as cardinal practices of the Party. O have attached here recent documents that clearly indicated that your extolled PDP Zonal Leader in the South-West Zone of Nigeria and in indigene of Ogun State is, to say the least, not a credit to the Party as a member let along being a zonal leader.
Since I stack in my practice of party politics to the hallowed and cherished principles enunciated above, I take this opportunity to let you know that while I continue to remain a card-carrying member of PDP, I cannot and I will not subscribe to a wanted habitual criminal being installed as my zonal leader in the Party; a criminal for who extradition has been requested by the US Government, in the meantime, I will consider withdrawing my activity with PDP at Local, State, Zonal and national levels until the anomalous and shameful situation is corrected.
Thank you.
Yours sincerely,
Olusegun Obasanjo

Watch Out! Vitamins may be bad

Why vitamins may be bad

Many people take vitamins as part of their daily fitness regimens, having heard that antioxidants aid physical recovery and amplify the impact of workouts. But in another example of science undercutting deeply held assumptions, several new experiments find that antioxidant supplements may actually reduce the benefits of training.
Antioxidants became popular dietary supplements largely because they were said to sop up free radicals, the highly reactive oxygen molecules that are generated during daily activities. Physical exertion, through its breakdown of oxygen, results in the creation of large numbers of these molecules, which, in excess, can lead to cell death and tissue damage. So it seems logical that reducing the number of free radicals produced by exercise would be desirable.

Enter antioxidants, which absorb and deactivate free radicals. While the body creates its own antioxidants, until recently many researchers believed that we produce too few natural antioxidants to counteract the depredations from free radicals created during exercise. So many people who exercise began downing large doses of antioxidants such as vitamins C and E, even though few experiments in people had actually examined the precise physiological impacts of antioxidant supplements in people who work out.
For a study published in The Journal of Physiology, researchers with the Norwegian School of Sport Sciences in Oslo and other institutions gathered 54 healthy adult men and women, most of them recreational runners or cyclists, and conducted a series of tests, including muscle biopsies, blood draws and treadmill runs, to establish their baseline endurance capacity and the cellular health of their muscles.
Then they divided the volunteers into two groups. Those in one group took four pills a day, delivering a total dose of 1,000 milligrams of vitamin C and 235 milligrams of vitamin E. Members of the second group got identical placebo pills.

Culled from Punch

Drinking in pregnancy may harm placenta — Study

A pregnant woman


Drinking moderate to large amounts of alcohol early in your pregnancy may damage your placenta, the organ that sustains your developing baby until it is born, researchers say.
In laboratory tests, investigators found that amounts of alcohol equal to moderate or heavy drinking reduced cell growth in the placenta. Low levels of alcohol had no effect, they added.

For the study, moderate drinking was roughly defined as two to three drinks a day, while four to six drinks a day was considered heavy drinking.
The scientists also found that moderate to heavy drinking reduced how much of an important amino acid called taurine is delivered from the mother to the baby through the placenta, according to the study published online in the journal PLoS One.
Taurine is crucial for a baby’s brain and body development, so this finding may explain some of the behavioral and physical problems seen in children born to alcoholic mothers, the British researchers suggested.

“Placental growth is reduced in comparison to non-exposed placentas, suggesting that in the long-term, there could be consequences to how much support the infant receives from the placenta during the rest of the pregnancy after this exposure,” study author Sylvia Lui, from Tommy’s Maternal and Fetal Health Research Centre at The University of Manchester, said in a university news release.
And, John Aplin, a professor of reproductive biomedicine at the center, added, “This research also suggests that women who are trying to conceive should not drink, as the damage caused by alcohol can happen very early on in pregnancy — perhaps before a woman knows she is pregnant.”
Another expert agreed.

“It can often be a few weeks before a woman discovers she’s pregnant, and this research shows that moderate drinking during those vital first weeks can have a big impact on the development of the baby,” Jane Brewin, chief executive of Tommy’s, a group that funds research into pregnancy problems and provides information to parents, said in the news release.

Culled from Punch

Nokia to launch Android enables smartphones

  NEW DELHI: Nokia is all set to launch its Android phone at the forthcoming Mobile World Congress. The company has been giving subtle hints about the device, which is likely to be called Nokia X, over the past few weeks.

The latest hint about the device from the phone maker is a teaser image posted on its official blog. The image in the teaser features four black colour arrow signs against a green background forming the alphabet 'X' almost confirming the name of its upcoming smartphone. A countdown timer for Nokia's MWC press conference also features a green background. . The green colour is often associated with Android and perhaps Nokia intends to signal the arrival of the Android-based Nokia X with its upcoming campaign.

Nokia has also posted a set of cryptic images with the similar 'X' teaser on its Weibo page. Weibo is a popular Chinese social network.

The teaser follows the appearance of a leaked press shot of the phone that featuring the alleged Normandy phone complete with the Nokia X branding. The render featured a green colour variant of the phone complete with the Nokia X branding also in green colour. Nokia's logo on the company's official Facebook and Twitter pages too switched to a green colour theme few days back, though this was eventually reverted to the normal blue colour.

Nokia's Android smartphone is said to have a Windows Phone-like interface and will not have access to Google Play Store. Instead, Nokia is said to have added its own app store -- featuring popular apps like Skype, Facebook etc --- in the device.

According to earlier reports, Nokia X will have a 4-inch screen with 1.2GHz dual-core Snapdragon 200 processor, 512MB RAM, 5MP camera, Bluetooth 4.0, Android 4.4 (KitKat) operating system and 4GB internal storage. It is said to be a dual-sim smartphone and come in six colour options.

Nigerian CBN Governor Suspended!

  • SANUSI
















    PRESIDENT Goodluck Jonathan on Thursday suspended the Governor of Central Bank, Mallam Lamido Sanusi over alleged "various acts of financial recklessness and misconduct".
    This is contained In a statement by the Special Adviser to the President on Media and Publicity, Dr Reuben Abati.
    Abati said the president ordered Sanusi to hand over to the most senior Deputy Governor of the bank, Dr Sarah Alade, until the conclusion of on-going investigation against the suspended CBN boss.
    Abati said the president took the action following reports of the Financial Reporting Council of Nigeria and other investigating bodies, which indicated that Sanusi’s tenure was characterised by various acts of financial recklessness and misconduct.
    He said the findings against Sanusi were inconsistent with the Federal Government's vision of a CBN propelled by the core values of focused economic management, prudence, transparency and financial discipline.
    Abati said the president was also deeply concerned about far-reaching irregularities under Sanusi’s watch which had distracted the CBN away from the pursuit and achievement of its statutory mandate.
    He restated the president's determination to urgently re-position the CBN for greater efficiency, respect for due process and accountability.
    Abati said that the president directed that Alade would serve as Acting Governor until the conclusion of on-going investigations into alleged breaches of enabling laws, due process and mandate of the CBN.
    He said the president expected that Alade should focus on the core mandate of the bank and conduct its affairs with greater professionalism, prudence and propriety to restore domestic and international confidence in its operations.
    "The Federal Government of Nigeria reassures all stakeholders in Nigeria’s financial and monetary system that this decision has been taken in absolute good faith, in the overall interest of the Nigerian economy and in accordance with our laws and due process." (NAN)
     
Supplied By News Agency Of Nigeria

Fuel Scarcity Scare!

Fear of fuel scarcity grips Lagos

fuel-scarcity-1THE fear of petrol scarcity is heating up the Lagos metropolis again and the possibility of vehicle owners buying at higher prices and commuters paying more for transport fare, as against what they used to pay, is rising among Lagosians with the appearance of long queues in many filling stations.
 The fear was almost corroborated few days ago, when mini buses plying Oshodi-Mile 2 began to charge arbitrary fares.  Some of them suddenly raised the fare from Oshodi to Toyota that under normal circumstances would attract N50.00 to N100.00, leaving commuters who could not afford the fare stranded at the bus-stop.
  
The N150.00 fare to Mile Two was equally raised to N200.00 with commuters who were caught unawares co-operating not to enter the buses.
  Of course, the sudden change and increase in fares turned out to be a big surprise.  While those who were in a hurry and without an option rushed to enter, those who did not prepare for the sudden change began to complain and had to wait till they were able to find those vehicles that would charge regular fares.
   “What is happening again and why this sudden increase. We know we are always at the mercy of these transporters, but at least, reasons should be advanced for the sudden increase in transport fare.”
   “I am not prepared for this and so would have to wait until I can find someone who would be considerate enough to accept what I have.  Candidly, I did not budget for this,” a commuter began to murmur.
  As at yesterday, when The Guardian went round to investigate the situation of things, it was discovered that some filling stations were not actually selling despite the fact that entrances to their filling stations were opened.  Paradoxically, few that were selling instead of having the usual long queue at their feeling stations had scanty buyers.

  At Majok Oil Limited, Ladipo, Oshodi, it was as if the attendants were on holiday as the entrances to the filling station were left open without a single buyer inside.  Yet, the usual signboard turning back buyers was not displayed.

  Around the Ikeja area only the FP filling station on Airport Road was dispensing fuel and car owners passing through the station quickly grabbed the opportunity to stop over and buy fuel, as the queue was already building up.

   At YTK Petroleum, Oshodi, few buyers were noticed with attendants dispensing fuel to them.
  At Adonai Petroleum Station, Charity, Oshodi, vehicles were being turned back that there was no fuel, while the attendants converged at a point where diesel was being sold.
  Speaking to The Guardian, one of the female attendants said that they had no fuel and she could not tell when they will get fresh supply.
   She, however, said that diesel was available that petrol was the problem.
 The Guardian also visited Fortex Oil Petrol Station where scanty vehicles were being attended to in the station.
  When asked to comment on the looming scarcity, another male attendant who would not reveal his name said: “Indeed, there was scarcity.  What you see us selling is our new supply.”
   Transport fare from Iyana Ipaja to Oshodi as at yesterday still remained at the normal rate and the BRT popularly known as “Fashola” were still charging their normal fare of N70.00 to Oshodi, the mini buses that used to charge N100.00 to Oshodi were still collecting the normal fare, too.
   But a female private car owner, who felt the pinch of the scarcity yesterday, feared that if the situation continues like that today things might become worse.
    “I went round all the filling stations where I used to buy fuel but all their gates were locked in the Agege and Ikeja area, but I was lucky to join the queue that was just building up at the FP filling station on Airport Road to buy fuel. I hope this situation does not continue like this, otherwise it is going to bring more hardship on commuters and car owners alike.”

Culled from Guardian Newspaper

Mark Zukerberg of Facebook is richer than Dangote

Facebook Buys WhatsApp for $19 Billion


Facebook Buys WhatsApp for $19 Billion
Photograph by Karly Domb Sadof/AP Photo
Today’s collective gasp at the frothy valuations and pace of mobile transformation in the Internet business comes courtesy of Facebook (FB). The social network announced after the close of the market on Wednesday that it has acquired mobile messaging service WhatsApp for $19 billion.
As several commentators tweeted, reaching simultaneously for the low-hanging comedy fruit: “They should call it WTFapp.”
Yes, the price is $19 billion: $4 billion in cash, about $12 billion in Facebook stock, and $3 billion in restricted shares, to pay out to WhatsApp employees over the next four years. For a five-year-old company with 50 employees, that translates into $380 million per person—and a heck of a haul for the startup’s venture investors, led by Sequoia Capital. WhatsApp founder Jan Koum, a former Yahoo! (YHOO) employee, will join Facebook’s board of directors.
WhatsApp makes a popular smartphone application that allows users of various devices, such as iPhones, BlackBerrys (BBRY), and phones running Android, to send texts and photographs seamlessly and without paying the additional fees carriers charge for SMS messages. (It’s free to use for the first year, then costs just a dollar a year.) According to Facebook, the service has 450 million active users on any given day and is on track to connect 1 billion people.
Facebook says that WhatsApp, like Instagram, will remain largely independent from the social network. The acquisition positions the company for even stronger growth on mobile phones, where advertising now makes up the majority of its revenue. It also strengthens its toehold in China: Facebook is blocked in the world’s largest Internet market; WhatsApp and Instagram are permitted to operate there.
In a conference call after the deal was announced, Facebook Chief Executive Officer Mark Zuckerberg called WhatsApp “an extremely high-quality product with incredibly strong engagement and rapid growth. It doesn’t get as much attention in the U.S. as it deserves because it started out growing in Europe, India, and Latin America.” He added: “It’s the only widely used app we’ve ever seen that has a higher rate of engagement than Facebook itself.”
Zuckerberg said the deal started to take shape on Feb. 9th, when he invited Koum to dinner and proposed that an acquisition could help both companies accelerate their growth and connect the world. Both said the deal came together quickly, with Zuckerberg adding that WhatsApp “is on a clear path to have a billion people using its product. Services in the world that have a billion people using them are all incredibly valuable.”
Koum, who founded the company with fellow Yahoo alum Brian Acton, said on the conference call that WhatsApp’s mission is “to make time mobile communication experiences simple, powerful, instantaneous, and commonplace. Our goal is to build a service that could be used by everyone … and a better alternative to SMS.”
Zuckerberg telegraphed his intentions to make these kinds of acquisitions during an interview in January for a Bloomberg Businessweek cover story. He revealed that he was pursuing a portfolio strategy, where apps could stand apart from the main social network and users would not be required to log in with their Facebook credentials.
“We just think that there are all these different ways that people want to share, and that compressing them all into a single blue app is not the right format of the future,” Zuckerberg said in January.
After which we opined: “In other words, the future of Facebook may not rest entirely on Facebook itself.”

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