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

How Much Did Facebook Buy Whatsapp For - With a lot cash sprayed in Silicon Valley, it's challenging for an acquisition to trigger a mix. Facebook's (FB) acquisition of WhatsApp in 2014 did simply that-- going beyond Google's (GOOG) $3.2 billion purchase of Nest Labs as well as Apple's (AAPL) $3 billion Beats Electronics purchase-- to end up being 2014's top purchase and one of the biggest tech acquires of all time.

WhatsApp, a text messaging application utilized extensively across the globe, swiped headings with its initial $16 billion proposal from Facebook. In 2013, the app lost $138 million and generated $10.2 million in earnings. So exactly how did the business win over Facebook? This write-up analyzes Facebook's record damaging procurement and the steps it required to arrive.

How Much Did Facebook Buy Whatsapp For

It ends up he's marketed greater than 22 million shares worth about $2.8 billion given that January.

Facebook consented to acquire WhatsApp in February 2014 for over $19 billion in supply, and the rate had gone up to $22 billion by October, when the bargain shut, thanks to Facebook's climbing supply cost. Koum owned about 45% of the firm when he sold it, Forbes approximates, which means his take on paper was about $10 billion. He additionally got a seat on Facebook's board.

At the end of 2015, according to Facebook's annual proxy filing, Koum possessed over 60 million shares of ordinary shares. He additionally had an additional 19 million restricted stock systems, which vest over time as well as work as an incentive for him to linger till November 2018.

Based on that vesting routine, it appears like he's earned regarding 3 countless those RSUs until now this year.

So generally, he's marketed regarding one-third of his current stake in Facebook this year.

Koum's supply sales come as WhatsApp continues to proliferate and also as the firm is making changes to the solution that can open up brand-new moneymaking chances, but additionally risks alienating some users.

On Thursday, Facebook announced that WhatsApp was altering its privacy policy for the very first time because the procurement to allow Facebook to see the contact number that an individual shares when they sign up for WhatsApp. Facebook can use this information to allow services to get in touch with individuals straight via WhatsApp, as they can already do via Carrier, and will certainly permit Facebook to reveal more relevant ads to logged-in customers. Nonetheless, WhatsApp claimed it would not share these contact number directly with users.

WhatsApp passed greater than than 1 billion regular monthly customers in February and is the most popular chat application in over half of the world, according to current statistics from SimilarWeb.

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

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