Whatsapp sold to Facebook - Everything You Need to Know!

Whatsapp Sold To Facebook - With a lot cash money thrown around in Silicon Valley, it's difficult for an acquisition to create a stir. Facebook's (FB) acquisition of WhatsApp last year did simply that-- surpassing Google's (GOOG) $3.2 billion acquisition of Nest Labs and also Apple's (AAPL) $3 billion Beats Electronics procurement-- to end up being 2014's leading purchase and also among the biggest technology purchases of perpetuity.

WhatsApp, a message messaging application used extensively around the world, stole headings with its preliminary $16 billion quote from Facebook. In 2013, the app lost $138 million and also brought in $10.2 million in earnings. So exactly how did the business win over Facebook? This post checks out Facebook's document breaking purchase and also the actions it required to arrive.

Whatsapp Sold To Facebook

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

Facebook accepted acquire WhatsApp in February 2014 for over $19 billion in supply, and also the rate had gone up to $22 billion by October, when the offer closed, thanks to Facebook's increasing stock price. Koum possessed about 45% of the firm when he marketed it, Forbes estimates, which means 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 also had one more 19 million limited supply devices, which vest in time and also work as a reward for him to remain up until November 2018.

Based on that vesting timetable, it resembles he's gained about 3 numerous those RSUs up until now this year.

So overall, he's marketed about one-third of his current stake in Facebook this year.

Koum's supply sales come as WhatsApp remains to grow rapidly and also as the company is making changes to the service that could open up brand-new moneymaking chances, yet likewise risks alienating some individuals.

On Thursday, Facebook revealed that WhatsApp was transforming its privacy policy for the first time because the purchase to permit Facebook to see the contact number that a customer shares when they enroll in WhatsApp. Facebook can use this details to allow organisations to speak to customers directly through WhatsApp, as they can already do with Carrier, and also will certainly enable Facebook to reveal even more relevant advertisements to logged-in users. Nonetheless, WhatsApp said it would not share these phone numbers directly with users.

WhatsApp passed more than than 1 billion regular monthly users in February and is the most prominent conversation app in majority of the world, according to recent stats from SimilarWeb.

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

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