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

How Much Did Facebook Pay For Whatsapp - With so much cash money sprayed in Silicon Valley, it's challenging for a purchase to create a stir. Facebook's (FB) acquisition of WhatsApp in 2015 did simply that-- exceeding Google's (GOOG) $3.2 billion purchase of Nest Labs as well as Apple's (AAPL) $3 billion Beats Electronics purchase-- to come to be 2014's leading procurement as well as one of the biggest technology acquires of perpetuity.

WhatsApp, a message messaging application utilized widely across the globe, swiped headings with its preliminary $16 billion quote from Facebook. In 2013, the application lost $138 million and generated $10.2 million in earnings. So just how did the company win over Facebook? This article examines Facebook's record breaking procurement and also the steps it took to get there.

How Much Did Facebook Pay For Whatsapp

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

Facebook agreed to purchase WhatsApp in February 2014 for over $19 billion in stock, and the cost had gone up to $22 billion by October, when the offer shut, thanks to Facebook's climbing stock cost. Koum possessed regarding 45% of the firm when he marketed it, Forbes estimates, 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 filing, Koum possessed over 60 million shares of common stock. He also had another 19 million limited stock devices, which vest gradually as well as serve as a motivation for him to remain till November 2018.

Based upon that vesting routine, it resembles he's made concerning 3 countless those RSUs so far this year.

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

Koum's supply sales come as WhatsApp continues to proliferate and also as the business is making changes to the solution that could open brand-new moneymaking chances, yet likewise runs the risk of pushing away some customers.

On Thursday, Facebook introduced that WhatsApp was changing its personal privacy plan for the first time given that the procurement to allow Facebook to see the contact number that an individual shares when they register for WhatsApp. Facebook can use this information to permit companies to call individuals directly with WhatsApp, as they can currently do through Carrier, and will permit Facebook to reveal even more pertinent advertisements to logged-in individuals. However, WhatsApp said it would certainly not share these contact number straight with users.

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

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

Tweet