How Much Did Facebook Buy Whatsapp for - Everything You Need to Know!

How Much Did Facebook Buy Whatsapp For - With so much cash money sprayed in Silicon Valley, it's challenging for an acquisition to create a mix. Facebook's (FB) acquisition of WhatsApp last year did simply that-- going beyond Google's (GOOG) $3.2 billion acquisition of Nest Labs as well as Apple's (AAPL) $3 billion Beats Electronics procurement-- to become 2014's top purchase as well as among the largest technology purchases of all time.

WhatsApp, a text messaging application utilized widely around the world, took headings with its first $16 billion quote from Facebook. In 2013, the app lost $138 million and generated $10.2 million in profits. So exactly how did the company win over Facebook? This post checks out Facebook's record breaking procurement as well as the actions it required to get there.

How Much Did Facebook Buy Whatsapp For

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

Facebook consented to get WhatsApp in February 2014 for over $19 billion in supply, and also the price had actually risen to $22 billion by October, when the deal closed, thanks to Facebook's climbing supply price. Koum possessed about 45% of the firm when he sold it, Forbes estimates, which implies his take on paper had to do with $10 billion. He likewise 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 one more 19 million restricted stock systems, which vest in time and work as a reward for him to linger till November 2018.

Based on that vesting timetable, it resembles he's earned regarding 3 numerous those RSUs so far this year.

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

Koum's stock sales come as WhatsApp remains to grow rapidly and as the firm is making changes to the solution that can open up brand-new moneymaking possibilities, yet also risks pushing away some users.

On Thursday, Facebook announced that WhatsApp was changing its privacy policy for the very first time since the acquisition to allow Facebook to see the phone number that a customer shares when they enroll in WhatsApp. Facebook can utilize this details to permit organisations to contact users straight via WhatsApp, as they can currently do through Carrier, and will permit Facebook to reveal even more pertinent ads to logged-in users. However, WhatsApp stated it would not share these contact number straight with individuals.

WhatsApp passed greater than than 1 billion monthly users in February and is one of the most popular chat app in majority of the world, according to recent stats from SimilarWeb.

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

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