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

How Much Did Facebook Pay For Whatsapp - With a lot cash sprayed in Silicon Valley, it's challenging for an acquisition to create a mix. Facebook's (FB) procurement of WhatsApp in 2015 did simply that-- going beyond Google's (GOOG) $3.2 billion acquisition of Nest Labs as well as Apple's (AAPL) $3 billion Beats Electronic devices purchase-- to become 2014's leading purchase as well as among the largest technology buys of all time.

WhatsApp, a text messaging app utilized widely across the globe, stole headlines with its preliminary $16 billion proposal from Facebook. In 2013, the app shed $138 million and brought in $10.2 million in profits. So just how did the company win over Facebook? This short article checks out Facebook's document breaking procurement and also the actions it took to get there.

How Much Did Facebook Pay For Whatsapp

It ends up he's offered more than 22 million shares worth roughly $2.8 billion since January.

Facebook agreed to acquire WhatsApp in February 2014 for over $19 billion in stock, as well as the cost had increased to $22 billion by October, when the deal shut, thanks to Facebook's climbing supply price. Koum possessed regarding 45% of the company when he offered it, Forbes estimates, which indicates 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 had over 60 million shares of common stock. He likewise had another 19 million restricted supply units, which vest in time and also act as a motivation for him to remain up until November 2018.

Based on that vesting schedule, it looks like he's earned about 3 numerous those RSUs until now this year.

So overall, he's sold concerning one-third of his existing risk in Facebook this year.

Koum's supply sales come as WhatsApp remains to grow rapidly and as the firm is making changes to the service that can open new moneymaking opportunities, yet likewise runs the risk of estranging some customers.

On Thursday, Facebook announced that WhatsApp was changing its personal privacy plan for the first time since the procurement to permit Facebook to see the phone number that an individual shares when they register for WhatsApp. Facebook can utilize this details to allow services to call individuals straight via WhatsApp, as they can currently do through Carrier, as well as will certainly allow Facebook to show even more appropriate advertisements to logged-in individuals. Nevertheless, WhatsApp stated it would certainly not share these contact number straight with individuals.

WhatsApp passed greater than than 1 billion month-to-month individuals in February as well as is the most preferred conversation application in over 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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