Did Facebook Buy Whatsapp - Everything You Need to Know!

Did Facebook Buy Whatsapp - With a lot cash sprayed in Silicon Valley, it's not easy for an acquisition to cause a mix. Facebook's (FB) purchase of WhatsApp in 2014 did simply that-- surpassing Google's (GOOG) $3.2 billion acquisition of Nest Labs and also Apple's (AAPL) $3 billion Beats Electronics purchase-- to come to be 2014's top purchase and also among the biggest tech buys of perpetuity.

WhatsApp, a text messaging app used commonly around the world, swiped headlines with its initial $16 billion bid from Facebook. In 2013, the application shed $138 million and generated $10.2 million in revenue. So exactly how did the business gain Facebook? This post takes a look at Facebook's record breaking procurement and the steps it took to arrive.

Did Facebook Buy Whatsapp

It turns out he's offered more than 22 million shares worth about $2.8 billion considering that January.

Facebook consented to get WhatsApp in February 2014 for over $19 billion in supply, and the rate had actually gone up to $22 billion by October, when the bargain shut, thanks to Facebook's rising stock rate. Koum had concerning 45% of the firm when he sold it, Forbes estimates, which means his take on paper had to do with $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 an additional 19 million limited stock devices, which vest gradually and also act as an incentive for him to stick around up until November 2018.

Based on that vesting timetable, it appears like he's earned concerning 3 numerous those RSUs so far this year.

So generally, he's marketed concerning one-third of his present stake in Facebook this year.

Koum's stock sales come as WhatsApp continues to proliferate and as the firm is making changes to the solution that could open new moneymaking chances, however likewise runs the risk of pushing away some customers.

On Thursday, Facebook announced that WhatsApp was changing its privacy policy for the very first time since the acquisition to permit Facebook to see the phone number that a user shares when they sign up for WhatsApp. Facebook can utilize this information to allow services to get in touch with customers directly through WhatsApp, as they can already do via Carrier, as well as will allow Facebook to show more relevant advertisements to logged-in users. However, WhatsApp claimed it would not share these phone numbers straight with individuals.

WhatsApp passed greater than than 1 billion regular monthly individuals in February and also is the most preferred conversation application in over half of the globe, according to current statistics from SimilarWeb.

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

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