Facebook Buys Whatsapp - Everything You Need to Know!

Facebook Buys Whatsapp - With a lot money sprayed in Silicon Valley, it's hard for a procurement to create a mix. Facebook's (FB) procurement of WhatsApp in 2014 did simply that-- going beyond Google's (GOOG) $3.2 billion acquisition of Nest Labs and also Apple's (AAPL) $3 billion Beats Electronics procurement-- to become 2014's leading purchase and also one of the biggest technology buys of perpetuity.

WhatsApp, a text messaging application used extensively across the globe, swiped headlines with its first $16 billion quote from Facebook. In 2013, the application lost $138 million as well as brought in $10.2 million in profits. So just how did the firm win over Facebook? This article takes a look at Facebook's document damaging acquisition and also the steps it required to get there.

Facebook Buys Whatsapp

It turns out he's sold more than 22 million shares worth approximately $2.8 billion since January.

Facebook consented to get WhatsApp in February 2014 for over $19 billion in stock, and the cost had gone up to $22 billion by October, when the deal closed, thanks to Facebook's climbing stock cost. Koum owned regarding 45% of the company when he marketed it, Forbes approximates, which means his take on paper was about $10 billion. He additionally obtained a seat on Facebook's board.

At the end of 2015, according to Facebook's yearly proxy filing, Koum owned over 60 million shares of common stock. He also had an additional 19 million limited stock devices, which vest in time as well as function as a motivation for him to remain till November 2018.

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

So overall, he's offered regarding one-third of his current risk in Facebook this year.

Koum's stock sales come as WhatsApp remains to proliferate and also as the company is making changes to the service that can open up brand-new moneymaking possibilities, however also takes the chance of estranging some individuals.

On Thursday, Facebook revealed that WhatsApp was altering its privacy plan for the first time because the acquisition to permit Facebook to see the phone number that a user shares when they register for WhatsApp. Facebook can use this information to allow services to call customers directly through WhatsApp, as they can currently do with Carrier, as well as will certainly enable Facebook to show more relevant ads to logged-in individuals. Nevertheless, WhatsApp said it would not share these contact number directly with individuals.

WhatsApp passed greater than than 1 billion month-to-month users in February and is one of the most popular chat application in majority of the world, according to current statistics from SimilarWeb.

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

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