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

How Much Did Facebook Pay For Whatsapp - With a lot money thrown around in Silicon Valley, it's challenging for a procurement to trigger a stir. Facebook's (FB) procurement 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 become 2014's leading acquisition and also among the biggest tech buys of all time.

WhatsApp, a text messaging app used extensively around the world, swiped headings with its preliminary $16 billion proposal from Facebook. In 2013, the application shed $138 million and also generated $10.2 million in revenue. So how did the firm gain Facebook? This short article takes a look at Facebook's document breaking purchase as well as the actions it required to get there.

How Much Did Facebook Pay For Whatsapp

It ends up he's offered more than 22 million shares worth roughly $2.8 billion given that January.

Facebook accepted purchase WhatsApp in February 2014 for over $19 billion in supply, and also the cost had actually gone up to $22 billion by October, when the bargain shut, thanks to Facebook's climbing supply price. Koum had regarding 45% of the company when he marketed it, Forbes approximates, which suggests his take on paper had to do with $10 billion. He likewise obtained a seat on Facebook's board.

At the end of 2015, according to Facebook's yearly proxy declaring, Koum had over 60 million shares of ordinary shares. He additionally had another 19 million limited supply units, which vest with time and function as a reward for him to stay until November 2018.

Based upon that vesting routine, it appears like he's made regarding 3 countless those RSUs so far this year.

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

Koum's supply sales come as WhatsApp remains to grow rapidly and as the firm is making changes to the service that could open brand-new moneymaking possibilities, yet likewise runs the risk of pushing away some users.

On Thursday, Facebook introduced that WhatsApp was altering its privacy plan for the very first time since the acquisition to enable Facebook to see the phone number that an individual shares when they sign up for WhatsApp. Facebook can use this information to allow businesses to get in touch with customers straight with WhatsApp, as they can currently do through Carrier, and will certainly allow Facebook to reveal even more relevant advertisements to logged-in users. Nevertheless, WhatsApp stated it would not share these phone numbers straight with users.

WhatsApp passed more than than 1 billion monthly users in February and also is the most preferred conversation application in over half of the globe, according to current stats from SimilarWeb.

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

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