Why Did Facebook Buy Whatsapp - Everything You Need to Know!

Why Did Facebook Buy Whatsapp - With a lot cash money thrown around in Silicon Valley, it's challenging for a purchase to create a stir. Facebook's (FB) purchase of WhatsApp in 2014 did simply that-- going beyond Google's (GOOG) $3.2 billion acquisition of Nest Labs and also Apple's (AAPL) $3 billion Beats Electronics purchase-- to end up being 2014's top procurement and also among the largest tech gets of all time.

WhatsApp, a text messaging app made use of commonly around the world, stole headings with its preliminary $16 billion bid from Facebook. In 2013, the app shed $138 million as well as generated $10.2 million in profits. So exactly how did the business win over Facebook? This article examines Facebook's document breaking purchase and the steps it took to arrive.

Why Did Facebook Buy Whatsapp

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

Facebook consented to purchase 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 closed, thanks to Facebook's increasing supply cost. Koum owned regarding 45% of the company when he offered it, Forbes estimates, which indicates his take on paper was about $10 billion. He also obtained a seat on Facebook's board.

At the end of 2015, according to Facebook's annual proxy filing, Koum possessed over 60 million shares of common stock. He additionally had one more 19 million restricted supply devices, which vest with time and also function as a motivation for him to linger until November 2018.

Based upon that vesting routine, it appears like he's gained about 3 countless those RSUs up until now this year.

So on the whole, he's marketed regarding one-third of his existing risk in Facebook this year.

Koum's stock sales come as WhatsApp continues to proliferate and as the firm is making changes to the service that can open up brand-new moneymaking possibilities, however additionally risks alienating some customers.

On Thursday, Facebook announced that WhatsApp was changing its privacy plan for the very first time considering that the procurement to allow Facebook to see the telephone number that a user shares when they register for WhatsApp. Facebook can use this information to allow services to get in touch with individuals straight through WhatsApp, as they can currently do with Messenger, and also will certainly enable Facebook to reveal even more pertinent advertisements to logged-in users. Nevertheless, WhatsApp said it would certainly not share these telephone number directly with customers.

WhatsApp passed more than than 1 billion monthly customers in February and is the most prominent conversation app in majority of the world, according to recent stats from SimilarWeb.

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

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