Facebook Buys Whatsapp - Everything You Need to Know!

Facebook Buys Whatsapp - With a lot cash sprayed in Silicon Valley, it's difficult for a purchase to trigger a stir. Facebook's (FB) acquisition of WhatsApp in 2014 did just that-- going beyond Google's (GOOG) $3.2 billion purchase of Nest Labs and also Apple's (AAPL) $3 billion Beats Electronics purchase-- to become 2014's top purchase and also one of the largest technology acquires of all time.

WhatsApp, a message messaging app made use of commonly across the globe, stole headlines with its initial $16 billion bid from Facebook. In 2013, the app shed $138 million as well as brought in $10.2 million in earnings. So how did the firm gain Facebook? This write-up checks out Facebook's record breaking purchase and the actions it required to get there.

Facebook Buys Whatsapp

It turns out he's offered more than 22 million shares worth about $2.8 billion since January.

Facebook agreed to acquire WhatsApp in February 2014 for over $19 billion in supply, and also the rate had gone up to $22 billion by October, when the bargain shut, thanks to Facebook's increasing supply rate. Koum had regarding 45% of the firm when he marketed it, Forbes estimates, which indicates 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 annual proxy declaring, Koum possessed over 60 million shares of ordinary shares. He additionally had another 19 million restricted supply systems, which vest gradually as well as serve as an incentive for him to linger till November 2018.

Based upon that vesting routine, it appears like he's gained about 3 million of those RSUs up until now this year.

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

Koum's stock sales come as WhatsApp continues to grow rapidly and as the firm is making changes to the service that can open up new moneymaking possibilities, yet likewise risks estranging some individuals.

On Thursday, Facebook introduced that WhatsApp was changing its privacy policy for the first time because the procurement to permit Facebook to see the phone number that a user shares when they sign up for WhatsApp. Facebook can use this information to allow businesses to speak to individuals directly via WhatsApp, as they can currently do with Messenger, and also will certainly allow Facebook to show more appropriate ads to logged-in users. However, WhatsApp claimed it would certainly not share these contact number directly with users.

WhatsApp passed more than than 1 billion month-to-month customers in February as well as is the most preferred chat app in over half of the world, according to current stats from SimilarWeb.

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

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