How Much Did Facebook Pay for Whatsapp - Everything You Need to Know!

How Much Did Facebook Pay For Whatsapp - With so much money sprayed in Silicon Valley, it's not easy for a procurement to create a stir. Facebook's (FB) acquisition of WhatsApp last year did simply that-- exceeding Google's (GOOG) $3.2 billion acquisition of Nest Labs as well as Apple's (AAPL) $3 billion Beats Electronics purchase-- to end up being 2014's leading procurement and also among the largest tech buys of all time.

WhatsApp, a text messaging app used widely around the world, stole headlines with its initial $16 billion quote from Facebook. In 2013, the application shed $138 million as well as brought in $10.2 million in profits. So just how did the firm win over Facebook? This write-up examines Facebook's record damaging acquisition and the actions it took to arrive.

How Much Did Facebook Pay For Whatsapp

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

Facebook accepted acquire WhatsApp in February 2014 for over $19 billion in stock, and also the price had gone up to $22 billion by October, when the offer shut, thanks to Facebook's rising supply cost. Koum possessed concerning 45% of the firm when he offered it, Forbes approximates, which suggests his take on paper was about $10 billion. He likewise 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 also had an additional 19 million restricted supply units, which vest gradually and serve as a reward for him to stick around until November 2018.

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

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

Koum's stock sales come as WhatsApp remains to proliferate and also as the firm is making changes to the service that might open up brand-new moneymaking chances, however likewise takes the chance of alienating some individuals.

On Thursday, Facebook introduced that WhatsApp was altering its personal privacy policy for the first time because the procurement to allow Facebook to see the telephone number that a customer shares when they register for WhatsApp. Facebook can utilize this info to allow businesses to contact users straight through WhatsApp, as they can currently do through Carrier, as well as will certainly allow Facebook to reveal even more relevant ads to logged-in individuals. Nonetheless, WhatsApp said it would not share these contact number straight with individuals.

WhatsApp passed more than than 1 billion regular monthly customers in February as well as is one of the most preferred chat app in majority of the globe, according to current stats from SimilarWeb.

Facebook had no discuss the sales, as it doesn't comment on individuals' financial investment choices.

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