Facebook Whatsapp Acquisition - Everything You Need to Know!

Facebook Whatsapp Acquisition - With so much money sprayed in Silicon Valley, it's difficult for a procurement to create a mix. Facebook's (FB) purchase of WhatsApp in 2015 did just that-- going beyond Google's (GOOG) $3.2 billion acquisition of Nest Labs and also Apple's (AAPL) $3 billion Beats Electronics purchase-- to come to be 2014's top acquisition and also one of the largest technology purchases of all time.

WhatsApp, a text messaging app utilized widely around the world, swiped headlines with its initial $16 billion quote from Facebook. In 2013, the application shed $138 million and also brought in $10.2 million in profits. So just how did the company sway Facebook? This article takes a look at Facebook's record damaging purchase as well as the steps it required to arrive.

Facebook Whatsapp Acquisition

It turns out he's sold greater than 22 million shares worth about $2.8 billion considering that January.

Facebook consented to purchase WhatsApp in February 2014 for over $19 billion in stock, and the cost had risen to $22 billion by October, when the deal closed, thanks to Facebook's increasing supply cost. Koum owned about 45% of the company when he sold it, Forbes approximates, which suggests his take on paper had to do with $10 billion. He also obtained a seat on Facebook's board.

At the end of 2015, according to Facebook's annual proxy filing, Koum owned over 60 million shares of common stock. He likewise had one more 19 million limited supply systems, which vest over time and serve as an incentive for him to stick around till November 2018.

Based on that vesting timetable, it resembles he's made regarding 3 countless those RSUs thus far this year.

So generally, he's offered concerning one-third of his current stake in Facebook this year.

Koum's supply sales come as WhatsApp continues to grow rapidly and also as the business is making changes to the solution that might open up brand-new moneymaking chances, but also takes the chance of pushing away some users.

On Thursday, Facebook introduced that WhatsApp was transforming its personal privacy policy for the very first time since the acquisition to permit Facebook to see the phone number that a customer shares when they enroll in WhatsApp. Facebook can utilize this info to permit companies to speak to customers directly with WhatsApp, as they can already do via Carrier, and also will permit Facebook to show even more relevant advertisements to logged-in users. Nevertheless, WhatsApp stated it would certainly not share these telephone number straight with individuals.

WhatsApp passed greater than than 1 billion monthly individuals in February and is the most popular conversation application in majority of the world, according to current stats from SimilarWeb.

Facebook had no comment on the sales, as it does not discuss individuals' investment choices.

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