Facebook Bought Whatsapp - Everything You Need to Know!

Facebook Bought Whatsapp - With so much cash money sprayed in Silicon Valley, it's challenging for an acquisition to cause a stir. Facebook's (FB) acquisition of WhatsApp last year did simply that-- exceeding Google's (GOOG) $3.2 billion acquisition of Nest Labs and also Apple's (AAPL) $3 billion Beats Electronic devices procurement-- to come to be 2014's top acquisition as well as among the largest tech gets of perpetuity.

WhatsApp, a text messaging app utilized extensively across the globe, stole headlines with its initial $16 billion quote from Facebook. In 2013, the application lost $138 million as well as generated $10.2 million in revenue. So just how did the firm sway Facebook? This short article examines Facebook's record breaking procurement as well as the steps it required to arrive.

Facebook Bought Whatsapp

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

Facebook consented to purchase WhatsApp in February 2014 for over $19 billion in stock, as well as the rate had increased to $22 billion by October, when the deal shut, thanks to Facebook's rising supply price. Koum had regarding 45% of the firm when he sold it, Forbes approximates, which indicates his take on paper had to do with $10 billion. He also got a seat on Facebook's board.

At the end of 2015, according to Facebook's annual proxy filing, Koum had over 60 million shares of common stock. He also had another 19 million limited stock units, which vest over time and also work as a motivation for him to remain up until November 2018.

Based upon that vesting timetable, it resembles he's gained concerning 3 countless those RSUs until now this year.

So in general, he's marketed concerning one-third of his existing stake in Facebook this year.

Koum's supply sales come as WhatsApp continues to grow rapidly and as the business is making changes to the service that might open up new moneymaking possibilities, yet additionally takes the chance of alienating some individuals.

On Thursday, Facebook announced that WhatsApp was transforming its privacy plan for the first time because the acquisition to enable Facebook to see the contact number that a user shares when they sign up for WhatsApp. Facebook can utilize this info to enable services to call customers directly via WhatsApp, as they can currently do via Carrier, and will allow Facebook to show even more relevant advertisements to logged-in customers. Nonetheless, WhatsApp claimed it would not share these contact number directly with individuals.

WhatsApp passed more than than 1 billion regular monthly customers in February and is the most popular chat application in more than half of the world, according to current stats from SimilarWeb.

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

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