Facebook Bought Whatsapp - Everything You Need to Know!

Facebook Bought Whatsapp - With so much cash money thrown around in Silicon Valley, it's hard for a procurement to trigger a mix. Facebook's (FB) procurement of WhatsApp in 2014 did just that-- exceeding Google's (GOOG) $3.2 billion purchase of Nest Labs and also Apple's (AAPL) $3 billion Beats Electronic devices procurement-- to come to be 2014's leading purchase and one of the biggest technology acquires of all time.

WhatsApp, a text messaging application made use of commonly around the world, swiped headlines with its first $16 billion proposal from Facebook. In 2013, the app shed $138 million and also brought in $10.2 million in profits. So just how did the business win over Facebook? This write-up takes a look at Facebook's document breaking acquisition and the steps it took to arrive.

Facebook Bought Whatsapp

It turns out he's offered greater than 22 million shares worth roughly $2.8 billion because January.

Facebook consented to purchase WhatsApp in February 2014 for over $19 billion in supply, as well as the price had gone up to $22 billion by October, when the deal closed, thanks to Facebook's increasing supply price. Koum possessed regarding 45% of the firm when he marketed it, Forbes estimates, which suggests his take on paper was about $10 billion. He additionally got a seat on Facebook's board.

At the end of 2015, according to Facebook's yearly proxy declaring, Koum possessed over 60 million shares of common stock. He also had another 19 million restricted stock systems, which vest over time and also act as an incentive for him to stay till November 2018.

Based upon that vesting schedule, it resembles he's made about 3 numerous those RSUs so far this year.

So generally, he's marketed regarding one-third of his current risk in Facebook this year.

Koum's stock sales come as WhatsApp remains to grow rapidly and as the company is making changes to the solution that might open up new moneymaking chances, yet also risks estranging some customers.

On Thursday, Facebook introduced that WhatsApp was transforming its privacy policy for the first time considering that the purchase to enable Facebook to see the contact number that a user shares when they register for WhatsApp. Facebook can use this info to enable companies to contact users straight through WhatsApp, as they can already do with Messenger, and will allow Facebook to reveal more pertinent ads to logged-in individuals. Nonetheless, WhatsApp claimed it would certainly not share these phone numbers directly with customers.

WhatsApp passed greater than than 1 billion regular monthly users in February and also is the most prominent chat application in over half of the globe, according to current statistics from SimilarWeb.

Facebook had no talk about the sales, as it doesn't comment on peoples' investment decisions.

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