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

How Much Did Facebook Buy Whatsapp For - With a lot cash thrown around in Silicon Valley, it's difficult for an acquisition to trigger a mix. Facebook's (FB) procurement of WhatsApp last year did just that-- surpassing Google's (GOOG) $3.2 billion acquisition of Nest Labs and also Apple's (AAPL) $3 billion Beats Electronics procurement-- to end up being 2014's top purchase and also among the biggest tech buys of all time.

WhatsApp, a message messaging app utilized widely around the world, took headings with its initial $16 billion quote from Facebook. In 2013, the app shed $138 million and brought in $10.2 million in profits. So just how did the firm sway Facebook? This write-up checks out Facebook's document breaking purchase and the actions it took to arrive.

How Much Did Facebook Buy Whatsapp For

It ends up he's sold more than 22 million shares worth about $2.8 billion considering that January.

Facebook consented to buy WhatsApp in February 2014 for over $19 billion in stock, and also the rate had actually increased to $22 billion by October, when the offer closed, thanks to Facebook's climbing supply rate. Koum had concerning 45% of the firm when he offered it, Forbes estimates, which indicates his take on paper had to do with $10 billion. He additionally got a seat on Facebook's board.

At the end of 2015, according to Facebook's annual proxy filing, Koum possessed over 60 million shares of common stock. He additionally had one more 19 million limited supply systems, which vest over time and also function as an incentive for him to linger until November 2018.

Based on that vesting schedule, it looks like he's earned concerning 3 countless those RSUs up until now this year.

So on the whole, he's offered about one-third of his present risk in Facebook this year.

Koum's stock sales come as WhatsApp remains to grow rapidly and as the firm is making changes to the solution that can open brand-new moneymaking opportunities, but also takes the chance of alienating some customers.

On Thursday, Facebook announced that WhatsApp was changing its personal privacy plan for the very first time given that the procurement to permit Facebook to see the phone number that a customer shares when they register for WhatsApp. Facebook can utilize this information to enable organisations to contact individuals directly with WhatsApp, as they can already do with Messenger, and also will certainly allow Facebook to show more pertinent advertisements to logged-in individuals. Nevertheless, WhatsApp said it would certainly not share these phone numbers straight with users.

WhatsApp passed greater than than 1 billion month-to-month individuals in February and also is one of the most prominent chat application in over half of the world, according to current stats from SimilarWeb.

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

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