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

Is Whatsapp Sold To Facebook - With so much money thrown around in Silicon Valley, it's not easy for an acquisition to cause a mix. Facebook's (FB) procurement of WhatsApp last year did simply that-- going beyond Google's (GOOG) $3.2 billion purchase of Nest Labs and Apple's (AAPL) $3 billion Beats Electronic devices procurement-- to end up being 2014's top procurement and among the largest technology purchases of perpetuity.

WhatsApp, a text messaging application used extensively around the world, took headlines with its initial $16 billion proposal from Facebook. In 2013, the application lost $138 million and brought in $10.2 million in profits. So exactly how did the firm gain Facebook? This post takes a look at Facebook's record breaking procurement and the actions it required to arrive.

Is Whatsapp Sold To Facebook

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

Facebook accepted buy WhatsApp in February 2014 for over $19 billion in stock, and the price had risen to $22 billion by October, when the bargain shut, thanks to Facebook's climbing supply cost. Koum possessed about 45% of the firm when he sold it, Forbes approximates, which indicates 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 owned over 60 million shares of common stock. He likewise had another 19 million limited supply devices, which vest over time as well as serve as a motivation for him to linger until November 2018.

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

So overall, he's offered regarding one-third of his existing stake in Facebook this year.

Koum's stock sales come as WhatsApp continues to proliferate and also as the firm is making changes to the service that could open up brand-new moneymaking opportunities, but likewise runs the risk of pushing away some individuals.

On Thursday, Facebook revealed that WhatsApp was changing its personal privacy plan for the very first time since the purchase to enable Facebook to see the phone number that a customer shares when they enroll in WhatsApp. Facebook can utilize this information to enable services to call individuals straight via WhatsApp, as they can already do through Carrier, and also will certainly enable Facebook to reveal even more appropriate advertisements to logged-in customers. Nonetheless, WhatsApp said it would certainly not share these telephone number directly with customers.

WhatsApp passed more than than 1 billion month-to-month individuals in February and is one of the most preferred chat app in more than half of the globe, according to recent stats from SimilarWeb.

Facebook had no comment on the sales, as it doesn't talk about individuals' financial investment decisions.

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