Facebook Acquires Whatsapp - Everything You Need to Know!

Facebook Acquires Whatsapp - With so much cash thrown around in Silicon Valley, it's challenging for an acquisition to cause a mix. Facebook's (FB) acquisition of WhatsApp in 2014 did just that-- surpassing Google's (GOOG) $3.2 billion purchase of Nest Labs as well as Apple's (AAPL) $3 billion Beats Electronic devices purchase-- to become 2014's leading acquisition and also one of the biggest technology gets of perpetuity.

WhatsApp, a message messaging application used widely around the world, took headings with its initial $16 billion quote from Facebook. In 2013, the app lost $138 million and brought in $10.2 million in profits. So exactly how did the business win over Facebook? This article takes a look at Facebook's document breaking procurement as well as the actions it took to arrive.

Facebook Acquires Whatsapp

It turns out he's marketed greater than 22 million shares worth about $2.8 billion given that January.

Facebook agreed to buy WhatsApp in February 2014 for over $19 billion in stock, as well as the cost had gone up to $22 billion by October, when the offer shut, thanks to Facebook's climbing stock rate. Koum owned concerning 45% of the firm when he marketed it, Forbes estimates, which indicates 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 annual proxy filing, Koum owned over 60 million shares of ordinary shares. He additionally had an additional 19 million restricted supply devices, which vest over time and also function as a motivation for him to stay until November 2018.

Based on that vesting timetable, it resembles he's gained about 3 million of those RSUs so far this year.

So on the whole, he's offered concerning one-third of his existing 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 brand-new moneymaking possibilities, but also runs the risk of alienating some individuals.

On Thursday, Facebook revealed that WhatsApp was altering its privacy plan for the first time since the procurement to permit Facebook to see the telephone number that a customer shares when they enroll in WhatsApp. Facebook can use this information to permit companies to speak to users straight through WhatsApp, as they can currently do with Messenger, as well as will enable Facebook to show even more relevant advertisements to logged-in users. Nevertheless, WhatsApp stated it would not share these telephone number directly with users.

WhatsApp passed greater than than 1 billion regular monthly customers in February and is one of the most popular conversation application in majority of the world, according to current stats from SimilarWeb.

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

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