Facebook Buys Whatsapp for 19 Billion - Everything You Need to Know!

Facebook Buys Whatsapp For 19 Billion - With a lot cash sprayed in Silicon Valley, it's hard for a procurement to trigger a mix. Facebook's (FB) acquisition of WhatsApp last year did just that-- surpassing Google's (GOOG) $3.2 billion purchase of Nest Labs and Apple's (AAPL) $3 billion Beats Electronic devices procurement-- to become 2014's leading procurement and also among the biggest tech purchases of perpetuity.

WhatsApp, a text messaging application utilized widely across the globe, took headings with its initial $16 billion proposal from Facebook. In 2013, the application shed $138 million and generated $10.2 million in earnings. So how did the business sway Facebook? This article takes a look at Facebook's record damaging acquisition as well as the steps it required to arrive.

Facebook Buys Whatsapp For 19 Billion

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

Facebook accepted get WhatsApp in February 2014 for over $19 billion in stock, and the price had actually increased to $22 billion by October, when the deal closed, thanks to Facebook's climbing supply rate. Koum owned concerning 45% of the firm when he sold it, Forbes approximates, which implies his take on paper was about $10 billion. He likewise got a seat on Facebook's board.

At the end of 2015, according to Facebook's yearly proxy declaring, Koum had over 60 million shares of ordinary shares. He likewise had one more 19 million restricted supply systems, which vest in time and function as a reward for him to stick around till November 2018.

Based on that vesting timetable, it appears like he's gained regarding 3 million of those RSUs so far this year.

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

Koum's supply sales come as WhatsApp remains to proliferate and also as the company is making changes to the solution that might open up new moneymaking possibilities, but likewise runs the risk of alienating some individuals.

On Thursday, Facebook revealed that WhatsApp was altering its privacy policy for the very first time because the acquisition to allow Facebook to see the telephone number that a customer shares when they sign up for WhatsApp. Facebook can utilize this details to allow services to call customers straight via WhatsApp, as they can currently do via Carrier, and also will certainly permit Facebook to reveal more pertinent ads to logged-in individuals. Nevertheless, WhatsApp stated it would certainly not share these contact number straight with users.

WhatsApp passed greater than than 1 billion month-to-month customers in February and is one of the most prominent conversation app in more than half of the world, according to recent statistics from SimilarWeb.

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

Tweet