Is Whatsapp sold to Facebook - Everything You Need to Know!

Is Whatsapp Sold To Facebook - With a lot cash money sprayed in Silicon Valley, it's challenging for an acquisition to trigger a stir. Facebook's (FB) purchase of WhatsApp in 2014 did simply that-- surpassing Google's (GOOG) $3.2 billion purchase of Nest Labs as well as Apple's (AAPL) $3 billion Beats Electronic devices purchase-- to end up being 2014's leading purchase as well as among the largest tech buys of all time.

WhatsApp, a message messaging app made use of extensively across the globe, took headlines with its initial $16 billion quote from Facebook. In 2013, the app lost $138 million and generated $10.2 million in revenue. So exactly how did the company win over Facebook? This short article checks out Facebook's record breaking procurement as well as the steps it required to get there.

Is Whatsapp Sold To Facebook

It ends up he's marketed more than 22 million shares worth roughly $2.8 billion since January.

Facebook consented to get WhatsApp in February 2014 for over $19 billion in stock, and the rate had gone up to $22 billion by October, when the offer shut, thanks to Facebook's rising supply cost. Koum had concerning 45% of the business when he marketed it, Forbes estimates, which suggests 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 annual proxy filing, Koum had over 60 million shares of common stock. He likewise had another 19 million restricted supply devices, which vest gradually and serve as an incentive for him to remain until November 2018.

Based on that vesting routine, it resembles he's made about 3 million of those RSUs so far this year.

So overall, he's marketed concerning one-third of his existing risk in Facebook this year.

Koum's supply sales come as WhatsApp remains to grow rapidly and as the business is making changes to the solution that could open new moneymaking opportunities, yet likewise risks estranging some users.

On Thursday, Facebook introduced that WhatsApp was changing its privacy policy for the first time given that the acquisition to permit Facebook to see the phone number that a customer shares when they sign up for WhatsApp. Facebook can utilize this info to allow organisations to contact users directly via WhatsApp, as they can already do with Carrier, and also will certainly enable Facebook to reveal even more relevant ads to logged-in users. Nevertheless, WhatsApp said it would certainly not share these phone numbers straight with users.

WhatsApp passed more than than 1 billion monthly customers in February as well as is one of the most prominent conversation app in majority of the globe, according to recent stats from SimilarWeb.

Facebook had no talk about the sales, as it doesn't discuss individuals' investment choices.

Tweet