Facebook Buys Whatsapp - Everything You Need to Know!

Facebook Buys Whatsapp - With so much cash sprayed in Silicon Valley, it's not easy for an acquisition to create a mix. Facebook's (FB) acquisition of WhatsApp in 2015 did simply that-- exceeding Google's (GOOG) $3.2 billion acquisition of Nest Labs as well as Apple's (AAPL) $3 billion Beats Electronics procurement-- to come to be 2014's leading purchase as well as one of the biggest tech buys of perpetuity.

WhatsApp, a text messaging app used commonly across the globe, swiped headlines with its first $16 billion proposal from Facebook. In 2013, the app lost $138 million and brought in $10.2 million in revenue. So just how did the company sway Facebook? This post examines Facebook's document damaging purchase and the steps it took to get there.

Facebook Buys Whatsapp

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

Facebook consented to purchase WhatsApp in February 2014 for over $19 billion in stock, as well as the price had risen to $22 billion by October, when the bargain closed, thanks to Facebook's increasing supply price. Koum possessed about 45% of the company when he marketed it, Forbes estimates, which implies his take on paper was about $10 billion. He also got 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 additionally had another 19 million restricted stock units, which vest in time as well as function as a reward for him to stay till November 2018.

Based on that vesting routine, it appears like he's made concerning 3 numerous those RSUs up until now this year.

So generally, he's sold regarding one-third of his present risk in Facebook this year.

Koum's stock sales come as WhatsApp remains to proliferate and also as the business is making changes to the service that can open up brand-new moneymaking opportunities, yet also risks alienating some individuals.

On Thursday, Facebook introduced that WhatsApp was changing its personal privacy policy for the first time given that the purchase to permit Facebook to see the phone number that a customer shares when they register for WhatsApp. Facebook can use this details to allow services to contact individuals straight via WhatsApp, as they can currently do with Carrier, and also will permit Facebook to reveal even more appropriate advertisements to logged-in customers. Nonetheless, WhatsApp said it would certainly not share these contact number straight with customers.

WhatsApp passed more than than 1 billion month-to-month users in February as well as is the most preferred conversation app in more than half of the globe, according to current statistics from SimilarWeb.

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

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