Facebook Buys Whatsapp - Everything You Need to Know!

Facebook Buys Whatsapp - With a lot cash thrown around in Silicon Valley, it's hard for a purchase to cause a stir. Facebook's (FB) procurement of WhatsApp in 2014 did simply that-- going beyond Google's (GOOG) $3.2 billion acquisition of Nest Labs as well as Apple's (AAPL) $3 billion Beats Electronic devices purchase-- to come to be 2014's top purchase and also among the biggest technology buys of all time.

WhatsApp, a text messaging application used commonly across the globe, stole headlines with its first $16 billion proposal from Facebook. In 2013, the application lost $138 million and also brought in $10.2 million in earnings. So just how did the firm win over Facebook? This short article checks out Facebook's document damaging acquisition and also the actions it took to get there.

Facebook Buys Whatsapp

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

Facebook consented to buy WhatsApp in February 2014 for over $19 billion in supply, and the rate had risen to $22 billion by October, when the offer closed, thanks to Facebook's climbing supply cost. Koum had concerning 45% of the firm when he marketed it, Forbes approximates, which means 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 annual proxy filing, Koum had over 60 million shares of common stock. He likewise had one more 19 million restricted stock systems, which vest in time as well as act as a motivation for him to remain until November 2018.

Based upon that vesting timetable, it resembles he's gained regarding 3 numerous those RSUs thus far this year.

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

Koum's supply sales come as WhatsApp remains to proliferate and also as the firm is making changes to the solution that might open up new moneymaking chances, however additionally risks estranging some customers.

On Thursday, Facebook introduced that WhatsApp was altering its privacy policy for the first time considering that the procurement to allow Facebook to see the phone number that a customer shares when they enroll in WhatsApp. Facebook can utilize this info to enable organisations to contact individuals directly through WhatsApp, as they can already do via Carrier, as well as will certainly allow Facebook to reveal even more relevant advertisements to logged-in users. However, WhatsApp claimed it would not share these contact number straight with individuals.

WhatsApp passed more than than 1 billion month-to-month users in February and is one of the most prominent chat app in majority of the world, according to recent stats from SimilarWeb.

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

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