Whatsapp Sale to Facebook - Everything You Need to Know!

Whatsapp Sale To Facebook - With a lot cash sprayed in Silicon Valley, it's not easy for a purchase to cause a stir. Facebook's (FB) acquisition of WhatsApp in 2015 did just that-- going beyond Google's (GOOG) $3.2 billion purchase of Nest Labs and also Apple's (AAPL) $3 billion Beats Electronic devices purchase-- to become 2014's top procurement and one of the largest technology purchases of all time.

WhatsApp, a text messaging app used extensively around the world, swiped headlines with its initial $16 billion proposal from Facebook. In 2013, the app shed $138 million and also brought in $10.2 million in profits. So just how did the firm sway Facebook? This short article analyzes Facebook's record breaking procurement as well as the actions it required to get there.

Whatsapp Sale To Facebook

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

Facebook consented to buy WhatsApp in February 2014 for over $19 billion in stock, and also the cost had risen to $22 billion by October, when the offer closed, thanks to Facebook's climbing supply cost. Koum possessed about 45% of the company when he sold it, Forbes approximates, which suggests his take on paper had to do with $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 likewise had another 19 million restricted stock devices, which vest gradually as well as serve as a reward for him to stay up until November 2018.

Based upon that vesting routine, it appears like he's earned regarding 3 million of those RSUs so far this year.

So overall, he's sold about one-third of his current risk in Facebook this year.

Koum's stock sales come as WhatsApp continues to proliferate and as the business is making changes to the solution that can open up new moneymaking chances, however additionally risks estranging some customers.

On Thursday, Facebook announced that WhatsApp was transforming its privacy policy for the very first time considering that the acquisition to allow Facebook to see the telephone number that a user shares when they register for WhatsApp. Facebook can use this details to enable companies to contact users straight via WhatsApp, as they can already do with Messenger, as well as will allow Facebook to show more relevant advertisements to logged-in users. However, WhatsApp claimed it would not share these phone numbers straight with customers.

WhatsApp passed more than than 1 billion monthly customers in February as well as is one of the most preferred chat application in over half of the world, according to current statistics from SimilarWeb.

Facebook had no discuss the sales, as it doesn't discuss individuals' investment decisions.

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