1. P R E S N T E D B Y : -
D A N I S H C A H N D A K ( 2 2 M B A 1 0 0 1 0 )
M A N I K M A R K R I YA ( 2 2 M B A 1 0 0 1 3
A M A N V E R M A ( 2 2 M B A 1 0 0 2 6 )
S H E E T A L T A H K U R ( 2 2 M B A 1 0 0
N I T E N D R A ( 2 2 M B A 1 0 0 1 8
WHATSAPP AND FACEBOOK
• FACEBOOK:- Facebook is a social media platform that was founded
by Mark Zuckerberg in 2004 while he was a student at Harvard
University. Originally called "The facebook," the site was initially
designed as a way for Harvard students to connect with each other.
It quickly expanded to other universities in the United States, and
then to the general public in 2006.
• WhatsApp:- WhatsApp is a messaging app that was founded in
2009 by Jan Koum and Brian Acton. It was acquired by Facebook in
2014 for $19 billion and has over 2 billion users as of 2021.
WhatsApp allows users to send messages, make voice and video
calls, and share photos and videos. It is particularly popular in
developing countries where internet access is limited or expensive.
• WhatsApp was founded in 2009 by Jan Koum and Brian
Acton. It quickly became one of the most popular messaging
apps in the world, with over 2 billion users as of 2021. In
2014, Facebook acquired WhatsApp for $19 billion, in what
was one of the largest tech industry acquisitions in history.
• As part of the acquisition deal, Koum and Acton entered into
agreements with Facebook that promised them certain rights
and protections. These agreements included clauses that
ensured the founders' autonomy and independence over
WhatsApp's user data, product development, and operations
4. ALLEGATIONS OF BREACH OF
• In 2018, Koum and Acton left Facebook over disagreements
about the company's handling of user data and advertising.
Following their departure, reports emerged that Facebook had
been sharing WhatsApp user data with its other subsidiaries,
including Instagram. This led to allegations that Facebook had
violated the agreements it had made with Koum and Acton,
thereby breaching the contract.
• Koum and Acton filed a lawsuit against Facebook in a
California court in 2018, seeking damages and an injunction
to prevent Facebook from using their WhatsApp data. They
alleged that Facebook had misled them about its intentions to
monetize WhatsApp, and had violated the agreements that
guaranteed their autonomy and independence.
5. FACEBOOK'S DEFENSE
• Facebook denied the allegations made by Koum and
Acton, stating that it had not breached any of the
agreements made with them. Facebook argued that the
clauses that guaranteed WhatsApp's autonomy and
independence were not absolute, and that the company
had the right to use the data in question in certain
• Facebook also argued that Koum and Acton had already
received the majority of the $19 billion purchase price,
and that they were not entitled to additional
6. IMPLICATIONS AND CONCLUSION
• The outcome of the case could have significant implications
for Facebook and its handling of user data across its various
platforms. It could also set a precedent for future tech industry
acquisitions and the legal protections that founders may be
entitled to in such deals.
• In conclusion, the WhatsApp and Facebook contract case is
an ongoing legal dispute that centers around allegations of
breach of contract between Facebook and the app's founders.
The case highlights the importance of clear and enforceable
agreements in tech industry acquisitions, and could have far-
reaching implications for the industry as a whole.