Facebook Buys Whatsapp - Everything You Need to Know!

Facebook Buys Whatsapp - With so much cash money thrown around in Silicon Valley, it's challenging for an acquisition to trigger a stir. Facebook's (FB) purchase of WhatsApp last year did simply that-- surpassing Google's (GOOG) $3.2 billion purchase of Nest Labs and also Apple's (AAPL) $3 billion Beats Electronics procurement-- to end up being 2014's top purchase as well as among the largest tech gets of all time.

WhatsApp, a message messaging app utilized extensively across the globe, swiped headings with its preliminary $16 billion quote from Facebook. In 2013, the application lost $138 million and generated $10.2 million in income. So just how did the firm gain Facebook? This post examines Facebook's document breaking acquisition and the steps it required to get there.

Facebook Buys Whatsapp

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

Facebook agreed to purchase WhatsApp in February 2014 for over $19 billion in stock, and also the cost had risen to $22 billion by October, when the offer closed, thanks to Facebook's increasing stock rate. Koum possessed concerning 45% of the company when he offered it, Forbes approximates, which indicates 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 declaring, Koum owned over 60 million shares of common stock. He additionally had another 19 million limited supply units, which vest in time and act as an incentive for him to remain till November 2018.

Based upon that vesting schedule, it looks like he's gained about 3 million of those RSUs up until now this year.

So in general, he's offered concerning one-third of his current risk in Facebook this year.

Koum's stock sales come as WhatsApp remains to grow rapidly and also as the business is making changes to the solution that can open up brand-new moneymaking opportunities, however also risks estranging some individuals.

On Thursday, Facebook revealed that WhatsApp was changing its privacy plan for the very first time considering that the purchase to permit Facebook to see the phone number that an individual shares when they sign up for WhatsApp. Facebook can utilize this information to allow organisations to get in touch with individuals directly with WhatsApp, as they can currently do with Messenger, as well as will allow Facebook to show more pertinent advertisements to logged-in individuals. Nevertheless, WhatsApp stated it would certainly not share these contact number directly with individuals.

WhatsApp passed more than than 1 billion monthly customers in February and is one of the most preferred chat app in over half of the world, according to current statistics from SimilarWeb.

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

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