Whatsapp Purchase Facebook - Everything You Need to Know!

Whatsapp Purchase Facebook - With so much money thrown around in Silicon Valley, it's hard for a purchase to trigger a mix. Facebook's (FB) procurement of WhatsApp in 2015 did just that-- exceeding Google's (GOOG) $3.2 billion acquisition of Nest Labs and also Apple's (AAPL) $3 billion Beats Electronics purchase-- to become 2014's leading purchase and also among the biggest tech buys of perpetuity.

WhatsApp, a text messaging app made use of commonly across the globe, stole headings with its first $16 billion quote from Facebook. In 2013, the app shed $138 million and brought in $10.2 million in income. So how did the company win over Facebook? This post checks out Facebook's record breaking purchase and also the steps it required to arrive.

Whatsapp Purchase Facebook

It turns out he's offered more than 22 million shares worth about $2.8 billion considering that January.

Facebook consented to purchase WhatsApp in February 2014 for over $19 billion in supply, as well as the price had actually gone up to $22 billion by October, when the offer closed, thanks to Facebook's rising stock cost. Koum had regarding 45% of the business when he sold it, Forbes approximates, which suggests his take on paper was about $10 billion. He also 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 ordinary shares. He additionally had one more 19 million limited supply devices, which vest gradually and also function as an incentive for him to stick around until November 2018.

Based on that vesting schedule, it resembles he's earned about 3 numerous those RSUs so far this year.

So in general, he's sold 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 business is making changes to the solution that might open up brand-new moneymaking chances, but also runs the risk of pushing away some individuals.

On Thursday, Facebook announced that WhatsApp was altering its privacy plan for the very first time since the purchase to enable Facebook to see the phone number that a customer shares when they register for WhatsApp. Facebook can utilize this details to enable businesses to call users directly through WhatsApp, as they can currently do via Messenger, as well as will allow Facebook to show even more pertinent advertisements to logged-in customers. However, WhatsApp said it would certainly not share these contact number straight with customers.

WhatsApp passed more than than 1 billion regular monthly customers in February and also is one of the most prominent conversation app in over half of the world, according to current statistics from SimilarWeb.

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

Tweet