Whatsapp Bought by Facebook - Everything You Need to Know!

Whatsapp Bought By Facebook - With a lot cash money sprayed in Silicon Valley, it's difficult for a procurement to cause a stir. Facebook's (FB) acquisition of WhatsApp last year did just that-- exceeding Google's (GOOG) $3.2 billion purchase of Nest Labs and Apple's (AAPL) $3 billion Beats Electronics purchase-- to come to be 2014's leading purchase and also one of the largest tech purchases of all time.

WhatsApp, a message messaging app used widely across the globe, swiped headings with its initial $16 billion bid from Facebook. In 2013, the application shed $138 million as well as generated $10.2 million in revenue. So how did the company gain Facebook? This write-up examines Facebook's document damaging purchase as well as the steps it took to get there.

Whatsapp Bought By Facebook

It turns out he's marketed greater than 22 million shares worth approximately $2.8 billion considering that January.

Facebook agreed to acquire WhatsApp in February 2014 for over $19 billion in stock, and the rate had risen to $22 billion by October, when the bargain closed, thanks to Facebook's rising supply cost. Koum possessed about 45% of the business when he offered it, Forbes approximates, which suggests his take on paper had to do with $10 billion. He additionally 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 common stock. He also had another 19 million restricted stock systems, which vest over time as well as function as a reward for him to stick around till November 2018.

Based upon that vesting schedule, it looks like he's gained concerning 3 million of those RSUs up until now this year.

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

Koum's stock sales come as WhatsApp remains to grow rapidly and also as the firm is making changes to the service that could open brand-new moneymaking opportunities, yet likewise runs the risk of alienating some individuals.

On Thursday, Facebook revealed that WhatsApp was altering its privacy plan for the very first time since the purchase to enable Facebook to see the telephone number that a user shares when they sign up for WhatsApp. Facebook can use this information to enable businesses to call individuals straight via WhatsApp, as they can already do through Messenger, and also will certainly allow Facebook to show more appropriate ads to logged-in users. Nevertheless, WhatsApp said it would not share these contact number directly with customers.

WhatsApp passed more than than 1 billion regular monthly users in February as well as is the most popular conversation app in more than half of the world, according to recent stats from SimilarWeb.

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

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