Whatsapp sold to Facebook - Everything You Need to Know!

Whatsapp Sold To Facebook - With so much cash money thrown around in Silicon Valley, it's not easy for an acquisition to create a mix. Facebook's (FB) purchase of WhatsApp last year did just that-- exceeding Google's (GOOG) $3.2 billion purchase of Nest Labs and also Apple's (AAPL) $3 billion Beats Electronics procurement-- to end up being 2014's top acquisition as well as among the biggest technology purchases of all time.

WhatsApp, a message messaging app made use of extensively across the globe, stole headlines with its initial $16 billion bid from Facebook. In 2013, the application shed $138 million and also brought in $10.2 million in revenue. So how did the business sway Facebook? This post examines Facebook's document damaging acquisition and also the steps it took to get there.

Whatsapp Sold To Facebook

It ends up he's sold greater than 22 million shares worth roughly $2.8 billion because January.

Facebook accepted purchase WhatsApp in February 2014 for over $19 billion in supply, as well as the rate had risen to $22 billion by October, when the deal closed, thanks to Facebook's rising stock cost. Koum had about 45% of the firm when he sold it, Forbes estimates, which indicates his take on paper had to do with $10 billion. He additionally obtained a seat on Facebook's board.

At the end of 2015, according to Facebook's yearly proxy filing, Koum had over 60 million shares of ordinary shares. He additionally had another 19 million restricted stock units, which vest over time as well as serve as an incentive for him to remain till November 2018.

Based upon that vesting schedule, it looks like he's made about 3 countless those RSUs until now this year.

So overall, he's offered regarding one-third of his existing stake in Facebook this year.

Koum's stock sales come as WhatsApp remains to grow rapidly and as the firm is making changes to the service that can open brand-new moneymaking chances, yet likewise takes the chance of estranging some individuals.

On Thursday, Facebook announced that WhatsApp was changing its personal privacy plan for the very first time because the procurement to permit Facebook to see the phone number that an individual shares when they sign up for WhatsApp. Facebook can use this details to enable services to contact individuals directly through WhatsApp, as they can currently do through Carrier, and will certainly enable Facebook to show more pertinent ads to logged-in customers. However, WhatsApp stated it would certainly not share these phone numbers directly with individuals.

WhatsApp passed more than than 1 billion month-to-month customers in February and also is the most popular conversation app in majority of the world, according to current statistics from SimilarWeb.

Facebook had no talk about the sales, as it does not talk about peoples' financial investment choices.

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