Facebook Buys Whatsapp for 19 Billion - Everything You Need to Know!

Facebook Buys Whatsapp For 19 Billion - With so much cash sprayed in Silicon Valley, it's challenging for an acquisition to cause a stir. Facebook's (FB) purchase of WhatsApp last year did just that-- surpassing Google's (GOOG) $3.2 billion acquisition of Nest Labs and Apple's (AAPL) $3 billion Beats Electronic devices procurement-- to come to be 2014's leading acquisition as well as among the largest technology purchases of perpetuity.

WhatsApp, a message messaging application used extensively across the globe, stole headings with its initial $16 billion proposal from Facebook. In 2013, the application lost $138 million and generated $10.2 million in profits. So exactly how did the company gain Facebook? This short article analyzes Facebook's record damaging purchase and the steps it took to get there.

Facebook Buys Whatsapp For 19 Billion

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

Facebook consented to purchase WhatsApp in February 2014 for over $19 billion in stock, as well as the price had risen to $22 billion by October, when the bargain shut, thanks to Facebook's rising supply cost. Koum owned regarding 45% of the company when he sold it, Forbes estimates, 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 yearly proxy filing, Koum had over 60 million shares of common stock. He likewise had another 19 million limited stock units, which vest with time and function as an incentive for him to linger until November 2018.

Based on that vesting timetable, it looks like he's earned regarding 3 countless those RSUs until now this year.

So on the whole, he's sold concerning one-third of his present risk in Facebook this year.

Koum's stock sales come as WhatsApp remains to proliferate and as the company is making changes to the solution that could open up brand-new moneymaking opportunities, yet additionally runs the risk of alienating some customers.

On Thursday, Facebook introduced that WhatsApp was changing its personal privacy plan for the very first time because the procurement to enable Facebook to see the contact number that an individual shares when they sign up for WhatsApp. Facebook can use this details to permit services to contact individuals directly through WhatsApp, as they can currently do with Carrier, and will certainly allow Facebook to show more appropriate advertisements to logged-in customers. Nevertheless, WhatsApp claimed it would not share these telephone number directly with users.

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

Facebook had no comment on the sales, as it does not comment on individuals' financial investment decisions.

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