With this your privacy is impacted. WhatsApp holds some data about you. So does Facebook. Those data are in different silos.
If the silos talk to each other, the company knows more. For example, it may learn that a given phone number (used for WhatsApp) is associated with the FB account (which may have a different name and/or different number associated). From February 8, FB will also be able to tie accurate location data if you give WhatsApp permission to use this.
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