Is Whatsapp sold to Facebook - Everything You Need to Know!

Is Whatsapp Sold To Facebook - With so much cash money sprayed in Silicon Valley, it's difficult for a purchase to create a stir. Facebook's (FB) acquisition of WhatsApp in 2015 did simply that-- surpassing Google's (GOOG) $3.2 billion purchase of Nest Labs and Apple's (AAPL) $3 billion Beats Electronics purchase-- to come to be 2014's leading acquisition and also one of the largest tech gets of perpetuity.

WhatsApp, a text messaging application used extensively around the world, swiped headlines with its preliminary $16 billion proposal from Facebook. In 2013, the app shed $138 million and generated $10.2 million in revenue. So just how did the business win over Facebook? This write-up takes a look at Facebook's record damaging purchase and the steps it took to arrive.

Is Whatsapp Sold To Facebook

It turns out he's offered more than 22 million shares worth approximately $2.8 billion since January.

Facebook agreed to purchase WhatsApp in February 2014 for over $19 billion in supply, as well as the rate had risen to $22 billion by October, when the offer shut, thanks to Facebook's increasing supply rate. Koum owned concerning 45% of the business when he marketed it, Forbes approximates, which implies his take on paper was about $10 billion. He also obtained 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 additionally had an additional 19 million restricted stock units, which vest in time as well as function as a motivation for him to remain until November 2018.

Based upon that vesting timetable, it resembles he's made regarding 3 million of those RSUs until now this year.

So on the whole, he's sold regarding one-third of his existing risk in Facebook this year.

Koum's supply sales come as WhatsApp remains to proliferate and as the firm is making changes to the solution that could open up brand-new moneymaking opportunities, yet likewise takes the chance of pushing away some users.

On Thursday, Facebook introduced that WhatsApp was altering its privacy plan for the very first time considering that the acquisition to allow Facebook to see the telephone number that a user shares when they register for WhatsApp. Facebook can use this info to permit services to call individuals straight with WhatsApp, as they can currently do through Carrier, and will permit Facebook to reveal even more pertinent ads to logged-in customers. Nevertheless, WhatsApp said it would not share these contact number directly with users.

WhatsApp passed more than than 1 billion monthly individuals 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 discuss the sales, as it does not discuss peoples' investment choices.

Tweet