Is Whatsapp sold to Facebook - Everything You Need to Know!

Is Whatsapp Sold To Facebook - With so much cash money sprayed in Silicon Valley, it's not easy for a procurement to cause a stir. Facebook's (FB) purchase of WhatsApp in 2015 did simply that-- surpassing Google's (GOOG) $3.2 billion acquisition of Nest Labs as well as Apple's (AAPL) $3 billion Beats Electronic devices procurement-- to end up being 2014's leading purchase as well as one of the largest technology purchases of all time.

WhatsApp, a text messaging app utilized extensively around the world, swiped headlines with its first $16 billion bid from Facebook. In 2013, the application shed $138 million and also generated $10.2 million in profits. So exactly how did the business gain Facebook? This post examines Facebook's record damaging purchase as well as the steps it required to get there.

Is Whatsapp Sold To Facebook

It ends up he's offered greater than 22 million shares worth roughly $2.8 billion since January.

Facebook agreed to purchase WhatsApp in February 2014 for over $19 billion in supply, and the price had actually risen to $22 billion by October, when the bargain closed, thanks to Facebook's climbing supply cost. Koum owned regarding 45% of the firm when he marketed it, Forbes approximates, which suggests 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 ordinary shares. He additionally had another 19 million limited supply units, which vest gradually and also act as an incentive for him to linger until November 2018.

Based upon that vesting timetable, it resembles he's gained concerning 3 million of those RSUs so far this year.

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

Koum's supply sales come as WhatsApp continues to grow rapidly and as the firm is making changes to the service that could open up brand-new moneymaking possibilities, but also runs the risk of alienating some individuals.

On Thursday, Facebook introduced that WhatsApp was changing its personal privacy policy for the very first time since the purchase to allow Facebook to see the telephone number that a customer shares when they enroll in WhatsApp. Facebook can utilize this info to permit companies to get in touch with individuals straight via WhatsApp, as they can currently do with Carrier, and will certainly permit Facebook to reveal even more appropriate advertisements to logged-in users. However, WhatsApp said it would not share these telephone number straight with customers.

WhatsApp passed more than than 1 billion regular monthly users in February and also is one of the most prominent chat app in majority of the world, according to current stats from SimilarWeb.

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

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