Whatsapp sold to Facebook - Everything You Need to Know!

Whatsapp Sold To Facebook - With so much cash thrown around in Silicon Valley, it's difficult for a purchase to trigger a mix. Facebook's (FB) purchase of WhatsApp in 2014 did just that-- going beyond Google's (GOOG) $3.2 billion acquisition of Nest Labs as well as Apple's (AAPL) $3 billion Beats Electronic devices procurement-- to come to be 2014's leading procurement and among the biggest technology gets of perpetuity.

WhatsApp, a text messaging app used widely 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 revenue. So how did the company gain Facebook? This write-up checks out Facebook's document breaking purchase and the actions it took to arrive.

Whatsapp Sold To Facebook

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

Facebook consented to get WhatsApp in February 2014 for over $19 billion in supply, and also the rate had actually increased to $22 billion by October, when the offer shut, thanks to Facebook's rising supply cost. Koum possessed concerning 45% of the business when he marketed it, Forbes approximates, which implies 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 owned over 60 million shares of common stock. He additionally had another 19 million restricted supply units, which vest with time and serve as a reward for him to remain up until November 2018.

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

So in general, 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 solution that can open up new moneymaking chances, however additionally takes the chance of pushing away some individuals.

On Thursday, Facebook announced that WhatsApp was changing its personal privacy plan for the very first time given that the acquisition to enable Facebook to see the phone number that a customer shares when they register for WhatsApp. Facebook can use this info to enable services to contact individuals directly through WhatsApp, as they can currently do through Carrier, as well as will certainly permit Facebook to reveal more pertinent ads to logged-in customers. Nonetheless, WhatsApp stated it would not share these phone numbers directly with customers.

WhatsApp passed more than than 1 billion regular monthly users in February as well as is one of the most prominent chat app in more than half of the world, according to recent stats from SimilarWeb.

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

Tweet