Facebook Buys Whatsapp for 19 Billion - Everything You Need to Know!

Facebook Buys Whatsapp For 19 Billion - With a lot cash money thrown around in Silicon Valley, it's hard for a procurement to cause a stir. Facebook's (FB) purchase of WhatsApp last year did simply that-- exceeding Google's (GOOG) $3.2 billion purchase of Nest Labs and also Apple's (AAPL) $3 billion Beats Electronic devices purchase-- to become 2014's leading acquisition and also one of the biggest technology buys of perpetuity.

WhatsApp, a message messaging application utilized extensively across the globe, took headlines with its first $16 billion proposal from Facebook. In 2013, the app lost $138 million and also generated $10.2 million in revenue. So exactly how did the firm sway Facebook? This write-up analyzes Facebook's document damaging purchase and the actions it took to arrive.

Facebook Buys Whatsapp For 19 Billion

It ends up he's marketed greater than 22 million shares worth approximately $2.8 billion because January.

Facebook accepted acquire WhatsApp in February 2014 for over $19 billion in stock, and the rate had actually gone up to $22 billion by October, when the deal shut, thanks to Facebook's increasing stock rate. Koum possessed about 45% of the company when he offered it, Forbes estimates, which implies his take on paper had to do with $10 billion. He additionally obtained a seat on Facebook's board.

At the end of 2015, according to Facebook's annual proxy declaring, Koum possessed over 60 million shares of common stock. He additionally had an additional 19 million restricted supply devices, which vest in time as well as serve as an incentive for him to linger until November 2018.

Based upon that vesting routine, it looks like he's made regarding 3 numerous those RSUs up until now this year.

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

Koum's supply sales come as WhatsApp continues to grow rapidly and also as the company is making changes to the solution that could open up new moneymaking chances, however likewise takes the chance of pushing away some individuals.

On Thursday, Facebook announced that WhatsApp was altering its personal privacy policy for the very first time since the acquisition to allow Facebook to see the contact number that a customer shares when they sign up for WhatsApp. Facebook can utilize this info to enable organisations to get in touch with users straight via WhatsApp, as they can currently do with Messenger, as well as will certainly permit Facebook to reveal more pertinent advertisements to logged-in individuals. Nevertheless, WhatsApp stated it would not share these telephone number directly with customers.

WhatsApp passed more than than 1 billion monthly users in February and also is one of the most preferred conversation app in majority of the globe, according to recent stats from SimilarWeb.

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

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