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

How Much Did Facebook Buy Whatsapp For - With so much money thrown around in Silicon Valley, it's difficult for a purchase to create a stir. Facebook's (FB) procurement of WhatsApp in 2015 did just that-- surpassing Google's (GOOG) $3.2 billion acquisition of Nest Labs and Apple's (AAPL) $3 billion Beats Electronics purchase-- to end up being 2014's leading acquisition as well as among the largest tech acquires of all time.

WhatsApp, a text messaging application made use of extensively around the world, took headlines with its first $16 billion proposal from Facebook. In 2013, the app shed $138 million and brought in $10.2 million in income. So how did the firm win over Facebook? This short article examines Facebook's record damaging purchase and also the steps it took to arrive.

How Much Did Facebook Buy Whatsapp For

It turns out he's marketed greater than 22 million shares worth about $2.8 billion since January.

Facebook consented to purchase WhatsApp in February 2014 for over $19 billion in stock, and also the rate had actually risen to $22 billion by October, when the offer shut, thanks to Facebook's increasing stock rate. Koum had regarding 45% of the company when he marketed it, Forbes approximates, which suggests his take on paper was about $10 billion. He also 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 an additional 19 million restricted supply units, which vest over time and function as a motivation for him to stick around until November 2018.

Based upon that vesting routine, it appears like he's gained about 3 numerous those RSUs so far this year.

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

Koum's stock sales come as WhatsApp remains to grow rapidly and as the company is making changes to the solution that could open new moneymaking possibilities, yet also risks alienating some individuals.

On Thursday, Facebook introduced that WhatsApp was altering its privacy plan for the first time because the purchase to enable Facebook to see the telephone number that a customer shares when they sign up for WhatsApp. Facebook can use this information to allow businesses to call customers directly with WhatsApp, as they can already do through Carrier, and will allow Facebook to reveal more relevant advertisements to logged-in customers. Nevertheless, WhatsApp stated it would certainly not share these phone numbers directly with users.

WhatsApp passed more than than 1 billion monthly customers in February and is the most prominent chat application in more than half of the world, according to recent statistics from SimilarWeb.

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

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