Whatsapp Sale to Facebook - Everything You Need to Know!

Whatsapp Sale To Facebook - With a lot money thrown around in Silicon Valley, it's difficult for an acquisition to trigger a mix. Facebook's (FB) purchase of WhatsApp last year did just that-- surpassing Google's (GOOG) $3.2 billion acquisition of Nest Labs and also Apple's (AAPL) $3 billion Beats Electronics purchase-- to become 2014's top procurement and also one of the largest tech buys of perpetuity.

WhatsApp, a message messaging app made use of extensively around the world, swiped headlines with its preliminary $16 billion quote from Facebook. In 2013, the application lost $138 million as well as generated $10.2 million in revenue. So how did the company gain Facebook? This article takes a look at Facebook's record breaking acquisition as well as the steps it took to get there.

Whatsapp Sale To Facebook

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

Facebook consented to acquire WhatsApp in February 2014 for over $19 billion in stock, and the rate had actually risen to $22 billion by October, when the deal closed, thanks to Facebook's rising supply cost. Koum had about 45% of the firm when he offered it, Forbes approximates, which suggests 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 annual proxy declaring, Koum possessed over 60 million shares of ordinary shares. He likewise had one more 19 million limited supply devices, which vest over time and serve as an incentive for him to remain until November 2018.

Based on that vesting schedule, it appears like he's gained concerning 3 countless those RSUs so far this year.

So on the whole, he's offered concerning one-third of his existing stake in Facebook this year.

Koum's stock sales come as WhatsApp continues to grow rapidly and also as the business is making changes to the solution that could open up new moneymaking possibilities, yet additionally risks pushing away some customers.

On Thursday, Facebook announced that WhatsApp was transforming its privacy plan for the very first time because the purchase to permit Facebook to see the phone number that a user shares when they register for WhatsApp. Facebook can utilize this information to permit services to speak to users directly via WhatsApp, as they can already do via Messenger, and will permit Facebook to show even more appropriate advertisements to logged-in users. Nonetheless, WhatsApp claimed it would not share these phone numbers straight with individuals.

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

Facebook had no discuss the sales, as it doesn't comment on peoples' financial investment decisions.

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