Whatsapp sold to Facebook - Everything You Need to Know!

Whatsapp Sold To Facebook - With so much money thrown around in Silicon Valley, it's difficult for a purchase to create a stir. Facebook's (FB) acquisition of WhatsApp in 2014 did just that-- exceeding Google's (GOOG) $3.2 billion purchase of Nest Labs and also Apple's (AAPL) $3 billion Beats Electronic devices procurement-- to come to be 2014's top purchase as well as one of the biggest technology buys of all time.

WhatsApp, a text messaging application made use of commonly across the globe, swiped headings with its initial $16 billion bid from Facebook. In 2013, the app lost $138 million as well as generated $10.2 million in earnings. So how did the company sway Facebook? This write-up takes a look at Facebook's document breaking acquisition as well as the steps it took to get there.

Whatsapp Sold To Facebook

It turns out he's offered greater than 22 million shares worth about $2.8 billion because January.

Facebook accepted get WhatsApp in February 2014 for over $19 billion in stock, as well as the rate had actually risen to $22 billion by October, when the offer closed, thanks to Facebook's climbing supply rate. Koum had concerning 45% of the business when he offered it, Forbes estimates, which means his take on paper had to do with $10 billion. He additionally 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 ordinary shares. He additionally had an additional 19 million limited supply systems, which vest with time as well as serve as an incentive for him to stick around till November 2018.

Based on that vesting schedule, it resembles he's made about 3 numerous those RSUs so far this year.

So overall, he's marketed about one-third of his present stake in Facebook this year.

Koum's supply sales come as WhatsApp continues to grow rapidly and also as the company is making changes to the service that could open new moneymaking possibilities, yet likewise runs the risk of estranging some customers.

On Thursday, Facebook announced that WhatsApp was transforming its privacy policy for the first time since the acquisition to permit Facebook to see the contact number that a customer shares when they sign up for WhatsApp. Facebook can utilize this information to allow companies to contact individuals straight through WhatsApp, as they can currently do with Carrier, as well as will certainly allow Facebook to show more pertinent ads to logged-in customers. However, WhatsApp stated it would not share these contact number directly with users.

WhatsApp passed more than than 1 billion regular monthly users in February and is one of the most popular chat application in over half of the globe, according to recent stats from SimilarWeb.

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

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