Facebook Bought Whatsapp - Everything You Need to Know!

Facebook Bought Whatsapp - With so much cash thrown around in Silicon Valley, it's hard for an acquisition to create a stir. Facebook's (FB) acquisition of WhatsApp last year did simply that-- going beyond Google's (GOOG) $3.2 billion purchase of Nest Labs and Apple's (AAPL) $3 billion Beats Electronics procurement-- to end up being 2014's leading acquisition and also among the biggest technology acquires of perpetuity.

WhatsApp, a text messaging application used extensively around the world, swiped headings with its first $16 billion proposal from Facebook. In 2013, the app lost $138 million and generated $10.2 million in revenue. So how did the company gain Facebook? This article takes a look at Facebook's document breaking purchase and also the steps it required to arrive.

Facebook Bought Whatsapp

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

Facebook accepted purchase WhatsApp in February 2014 for over $19 billion in supply, as well as the rate had gone up to $22 billion by October, when the deal closed, thanks to Facebook's increasing stock cost. Koum had regarding 45% of the firm when he sold it, Forbes estimates, which means 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 yearly proxy filing, Koum had over 60 million shares of common stock. He likewise had one more 19 million limited stock units, which vest in time and also work as an incentive for him to stick around until November 2018.

Based upon that vesting timetable, it looks like he's made concerning 3 numerous those RSUs until now this year.

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

Koum's supply sales come as WhatsApp continues to proliferate and as the firm is making changes to the solution that could open up brand-new moneymaking possibilities, but also risks estranging some individuals.

On Thursday, Facebook revealed that WhatsApp was transforming its privacy plan for the first time given that the procurement to permit Facebook to see the phone number that a user shares when they sign up for WhatsApp. Facebook can utilize this info to enable businesses to get in touch with users straight through WhatsApp, as they can currently do through Carrier, and will certainly allow Facebook to show even more appropriate advertisements to logged-in customers. However, WhatsApp said it would not share these phone numbers straight with individuals.

WhatsApp passed more than than 1 billion month-to-month individuals in February and is one of the most prominent conversation app in more than half of the world, according to current stats from SimilarWeb.

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

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