How Much Did Facebook Pay for Whatsapp - Everything You Need to Know!

How Much Did Facebook Pay For Whatsapp - With so much cash sprayed in Silicon Valley, it's difficult for a purchase to trigger a mix. Facebook's (FB) purchase of WhatsApp in 2014 did just that-- surpassing Google's (GOOG) $3.2 billion acquisition of Nest Labs and also Apple's (AAPL) $3 billion Beats Electronic devices purchase-- to end up being 2014's leading acquisition and also among the biggest tech acquires of perpetuity.

WhatsApp, a message messaging app used commonly around the world, swiped headlines with its preliminary $16 billion proposal from Facebook. In 2013, the app shed $138 million and also brought in $10.2 million in earnings. So how did the company win over Facebook? This write-up analyzes Facebook's record damaging purchase and also the steps it required to get there.

How Much Did Facebook Pay For Whatsapp

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

Facebook accepted buy WhatsApp in February 2014 for over $19 billion in supply, and also the price had gone up to $22 billion by October, when the bargain closed, thanks to Facebook's rising stock cost. Koum owned about 45% of the business when he marketed it, Forbes approximates, which implies his take on paper had to do with $10 billion. He likewise 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 an additional 19 million restricted supply units, which vest in time as well as act as a motivation for him to stick around until November 2018.

Based upon that vesting schedule, it looks like he's earned regarding 3 numerous those RSUs up until now this year.

So generally, he's marketed concerning one-third of his current risk in Facebook this year.

Koum's stock sales come as WhatsApp continues to grow rapidly and as the company is making changes to the service that can open up new moneymaking chances, but additionally risks pushing away some individuals.

On Thursday, Facebook announced that WhatsApp was changing its privacy plan for the first time considering that the procurement to enable Facebook to see the contact number that a customer shares when they register for WhatsApp. Facebook can use this info to enable companies to speak to users straight through WhatsApp, as they can currently do via Carrier, and will enable Facebook to show more pertinent advertisements to logged-in users. Nonetheless, WhatsApp claimed it would not share these contact number directly with individuals.

WhatsApp passed greater than than 1 billion month-to-month customers in February and also is the most popular conversation application in more than half of the globe, according to current stats from SimilarWeb.

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

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