Whatsapp Sale to Facebook - Everything You Need to Know!

Whatsapp Sale To Facebook - With so much money sprayed in Silicon Valley, it's hard for a procurement to cause a mix. Facebook's (FB) purchase of WhatsApp in 2015 did just that-- exceeding Google's (GOOG) $3.2 billion purchase of Nest Labs and Apple's (AAPL) $3 billion Beats Electronics procurement-- to end up being 2014's leading purchase as well as among the largest technology buys of all time.

WhatsApp, a text messaging application utilized commonly across the globe, stole headings with its initial $16 billion bid from Facebook. In 2013, the app lost $138 million and generated $10.2 million in revenue. So how did the firm win over Facebook? This article takes a look at Facebook's record breaking acquisition and also the actions it required to arrive.

Whatsapp Sale To Facebook

It turns out he's marketed greater than 22 million shares worth roughly $2.8 billion because January.

Facebook consented to acquire WhatsApp in February 2014 for over $19 billion in supply, and also the rate had gone up to $22 billion by October, when the offer shut, thanks to Facebook's rising stock cost. Koum possessed about 45% of the firm when he sold it, Forbes approximates, which implies 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 filing, Koum owned over 60 million shares of ordinary shares. He additionally had another 19 million restricted supply units, which vest gradually as well as function as a reward for him to linger up until November 2018.

Based on that vesting schedule, it resembles he's gained regarding 3 countless those RSUs until now this year.

So generally, he's offered about one-third of his current stake in Facebook this year.

Koum's stock sales come as WhatsApp continues to proliferate and also as the company is making changes to the service that might open up new moneymaking possibilities, but likewise takes the chance of pushing away some individuals.

On Thursday, Facebook announced that WhatsApp was altering its privacy policy for the first time given that the procurement to allow Facebook to see the contact number that an individual shares when they sign up for WhatsApp. Facebook can utilize this info to enable services to speak to individuals directly via WhatsApp, as they can already do via Messenger, and also will certainly allow Facebook to reveal more appropriate ads to logged-in users. Nevertheless, WhatsApp said it would certainly not share these contact number directly with customers.

WhatsApp passed greater than than 1 billion monthly customers in February and also is the most popular chat application in over half of the world, according to current statistics from SimilarWeb.

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

Tweet