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

How Much Did Facebook Buy Whatsapp For - With a lot cash money sprayed in Silicon Valley, it's not easy for an acquisition to trigger a stir. Facebook's (FB) procurement of WhatsApp last year did simply that-- going beyond Google's (GOOG) $3.2 billion purchase of Nest Labs as well as Apple's (AAPL) $3 billion Beats Electronic devices purchase-- to come to be 2014's leading acquisition and among the largest technology purchases of all time.

WhatsApp, a message messaging app used commonly around the world, took headlines with its initial $16 billion bid from Facebook. In 2013, the app lost $138 million and also generated $10.2 million in profits. So just how did the firm sway Facebook? This short article takes a look at Facebook's record breaking purchase and the steps it took to arrive.

How Much Did Facebook Buy Whatsapp For

It turns out he's marketed greater than 22 million shares worth approximately $2.8 billion since January.

Facebook agreed to purchase WhatsApp in February 2014 for over $19 billion in stock, and the rate had increased to $22 billion by October, when the bargain closed, thanks to Facebook's climbing stock cost. Koum owned regarding 45% of the company when he marketed it, Forbes approximates, which suggests his take on paper was about $10 billion. He likewise obtained a seat on Facebook's board.

At the end of 2015, according to Facebook's annual proxy declaring, Koum owned over 60 million shares of ordinary shares. He likewise had another 19 million limited stock devices, which vest with time as well as function as a motivation for him to stay until November 2018.

Based on that vesting schedule, it resembles he's earned concerning 3 million of those RSUs so far this year.

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

Koum's stock sales come as WhatsApp remains to proliferate and as the firm is making changes to the service that can open brand-new moneymaking opportunities, however likewise takes the chance of pushing away some users.

On Thursday, Facebook announced that WhatsApp was transforming its privacy policy for the first time because the purchase to enable Facebook to see the telephone number that an individual shares when they enroll in WhatsApp. Facebook can use this information to permit organisations to contact individuals directly with WhatsApp, as they can already do through Carrier, and also will certainly enable Facebook to reveal more appropriate ads to logged-in individuals. Nevertheless, WhatsApp claimed it would certainly not share these contact number directly with individuals.

WhatsApp passed greater than than 1 billion month-to-month individuals in February and also is one of the most prominent chat application in over half of the world, according to current stats from SimilarWeb.

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

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