Did Facebook Buy Whatsapp - Everything You Need to Know!

Did Facebook Buy Whatsapp - With a lot cash money sprayed in Silicon Valley, it's difficult for an acquisition to create a mix. Facebook's (FB) acquisition of WhatsApp in 2015 did simply that-- going beyond 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 top procurement and also one of the largest tech acquires of all time.

WhatsApp, a message messaging app utilized widely across the globe, stole headlines with its preliminary $16 billion bid from Facebook. In 2013, the app shed $138 million and also generated $10.2 million in revenue. So exactly how did the firm sway Facebook? This short article checks out Facebook's record breaking procurement and also the actions it took to get there.

Did Facebook Buy Whatsapp

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

Facebook consented to purchase WhatsApp in February 2014 for over $19 billion in stock, and the cost had increased to $22 billion by October, when the offer shut, thanks to Facebook's rising supply cost. Koum owned concerning 45% of the company when he sold it, Forbes approximates, which suggests his take on paper was about $10 billion. He likewise got 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 also had one more 19 million limited supply units, which vest gradually as well as function as an incentive for him to remain up until November 2018.

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

So on the whole, he's offered concerning one-third of his current stake in Facebook this year.

Koum's supply sales come as WhatsApp continues to grow rapidly and also as the company is making changes to the service that might open new moneymaking possibilities, yet additionally risks alienating some individuals.

On Thursday, Facebook announced that WhatsApp was changing its personal privacy policy for the first time considering that the procurement to permit Facebook to see the phone number that an individual shares when they sign up for WhatsApp. Facebook can use this info to permit companies to contact individuals straight via WhatsApp, as they can currently do with Carrier, as well as will enable Facebook to show even more appropriate advertisements to logged-in customers. Nevertheless, WhatsApp said it would certainly not share these contact number straight with customers.

WhatsApp passed greater than than 1 billion month-to-month customers in February and is the most popular chat app in more than half of the globe, according to recent stats from SimilarWeb.

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

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