Facebook Bought Whatsapp - Everything You Need to Know!

Facebook Bought Whatsapp - With a lot money sprayed in Silicon Valley, it's difficult for a purchase to create a stir. Facebook's (FB) purchase of WhatsApp in 2014 did just that-- surpassing Google's (GOOG) $3.2 billion purchase of Nest Labs and Apple's (AAPL) $3 billion Beats Electronics procurement-- to come to be 2014's leading purchase as well as among the biggest tech acquires of all time.

WhatsApp, a text messaging application utilized widely across the globe, stole headlines with its first $16 billion bid from Facebook. In 2013, the application lost $138 million and generated $10.2 million in revenue. So exactly how did the company gain Facebook? This article examines Facebook's record breaking procurement and the steps it required to get there.

Facebook Bought Whatsapp

It ends up he's offered more than 22 million shares worth approximately $2.8 billion because January.

Facebook consented to buy WhatsApp in February 2014 for over $19 billion in stock, and also the cost had increased to $22 billion by October, when the bargain shut, thanks to Facebook's rising stock price. Koum owned regarding 45% of the business when he sold it, Forbes approximates, which indicates 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 declaring, Koum possessed over 60 million shares of common stock. He additionally had one more 19 million restricted supply systems, which vest with time and work as an incentive for him to stay up until November 2018.

Based on that vesting timetable, it resembles he's made regarding 3 million of those RSUs until now this year.

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

Koum's supply sales come as WhatsApp remains to proliferate and also as the firm is making changes to the solution that can open new moneymaking chances, however likewise risks estranging some customers.

On Thursday, Facebook revealed that WhatsApp was altering its privacy policy for the first time since the acquisition to allow Facebook to see the telephone number that a user shares when they register for WhatsApp. Facebook can utilize this info to permit businesses to get in touch with customers straight through WhatsApp, as they can already do with Messenger, and will certainly allow Facebook to reveal more appropriate advertisements to logged-in customers. Nevertheless, WhatsApp said it would not share these phone numbers directly with individuals.

WhatsApp passed more than than 1 billion regular monthly customers in February as well as is one of the most prominent conversation application in majority of the world, according to recent stats from SimilarWeb.

Facebook had no comment on the sales, as it does not discuss individuals' investment decisions.

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