Facebook Buys Whatsapp for 19 Billion - Everything You Need to Know!

Facebook Buys Whatsapp For 19 Billion - With so much cash money thrown around in Silicon Valley, it's difficult for an acquisition to create a mix. Facebook's (FB) purchase of WhatsApp last year did simply that-- surpassing Google's (GOOG) $3.2 billion purchase of Nest Labs as well as Apple's (AAPL) $3 billion Beats Electronic devices procurement-- to end up being 2014's leading acquisition and also among the biggest technology acquires of perpetuity.

WhatsApp, a message messaging application utilized widely around the world, stole headings with its initial $16 billion bid from Facebook. In 2013, the app shed $138 million and also generated $10.2 million in revenue. So just how did the business win over Facebook? This short article checks out Facebook's document damaging procurement and the steps it took to arrive.

Facebook Buys Whatsapp For 19 Billion

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

Facebook consented to acquire WhatsApp in February 2014 for over $19 billion in supply, and also the cost had increased to $22 billion by October, when the bargain shut, thanks to Facebook's rising supply price. Koum owned concerning 45% of the company when he offered it, Forbes estimates, which means 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 yearly proxy filing, Koum owned over 60 million shares of ordinary shares. He also had an additional 19 million limited supply systems, which vest over time and also work as a motivation for him to remain until November 2018.

Based on that vesting routine, it appears like he's gained about 3 million of those RSUs so far this year.

So overall, he's marketed concerning one-third of his current stake 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 could open new moneymaking chances, but also takes the chance of pushing away some customers.

On Thursday, Facebook announced that WhatsApp was changing its personal privacy plan for the first time since the procurement to allow Facebook to see the telephone number that a customer shares when they sign up for WhatsApp. Facebook can use this information to enable organisations to get in touch with users straight through WhatsApp, as they can already do with Carrier, as well as will enable Facebook to show more relevant advertisements to logged-in individuals. Nonetheless, WhatsApp said it would not share these phone numbers straight with individuals.

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

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

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