Why Did Facebook Buy Whatsapp - Everything You Need to Know!

Why Did Facebook Buy Whatsapp - With so much cash money sprayed in Silicon Valley, it's not easy for a procurement to cause a mix. Facebook's (FB) purchase 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 top purchase and among the biggest technology buys of all time.

WhatsApp, a text messaging application used widely around the world, stole headlines with its first $16 billion proposal from Facebook. In 2013, the application shed $138 million as well as brought in $10.2 million in profits. So how did the firm sway Facebook? This article examines Facebook's record breaking acquisition as well as the steps it took to get there.

Why Did Facebook Buy Whatsapp

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

Facebook accepted acquire WhatsApp in February 2014 for over $19 billion in stock, and also the price had risen to $22 billion by October, when the deal shut, thanks to Facebook's climbing stock rate. Koum owned concerning 45% of the business when he sold it, Forbes estimates, which suggests his take on paper had to do with $10 billion. He likewise got 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 an additional 19 million restricted supply devices, which vest over time as well as act as a motivation for him to stay up until November 2018.

Based on that vesting timetable, it appears like he's made regarding 3 countless those RSUs thus far this year.

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

Koum's stock sales come as WhatsApp remains to proliferate and as the business is making changes to the service that can open up new moneymaking opportunities, however additionally takes the chance of pushing away some individuals.

On Thursday, Facebook revealed that WhatsApp was altering its privacy policy for the very first time considering that the acquisition to allow Facebook to see the telephone number that an individual shares when they sign up for WhatsApp. Facebook can use this info to permit services to speak to individuals directly with WhatsApp, as they can currently do with Carrier, as well as will certainly allow Facebook to show even more pertinent advertisements to logged-in customers. Nonetheless, WhatsApp stated it would certainly not share these phone numbers directly with customers.

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

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

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