Facebook Acquires Whatsapp - Everything You Need to Know!

Facebook Acquires Whatsapp - With so much money sprayed in Silicon Valley, it's challenging 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 acquisition of Nest Labs as well as Apple's (AAPL) $3 billion Beats Electronics procurement-- to become 2014's top purchase and among the largest tech gets of perpetuity.

WhatsApp, a text messaging app utilized extensively around the world, took headlines with its first $16 billion bid from Facebook. In 2013, the app shed $138 million and generated $10.2 million in income. So how did the business win over Facebook? This short article checks out Facebook's record damaging procurement and the steps it took to arrive.

Facebook Acquires Whatsapp

Facebook Acquires Whatsapp

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

Facebook accepted acquire WhatsApp in February 2014 for over $19 billion in stock, as well as the rate had actually gone up to $22 billion by October, when the deal closed, thanks to Facebook's rising supply price. Koum possessed about 45% of the company when he marketed it, Forbes approximates, which suggests his take on paper had to do with $10 billion. He likewise got a seat on Facebook's board.

At the end of 2015, according to Facebook's yearly proxy filing, Koum owned over 60 million shares of common stock. He likewise had another 19 million restricted stock systems, which vest in time and work as a reward for him to stick around till November 2018.

Based on that vesting timetable, it appears like he's gained concerning 3 million of those RSUs until now this year.

So on the whole, he's offered about 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 might open up brand-new moneymaking opportunities, however additionally risks alienating some customers.

On Thursday, Facebook revealed that WhatsApp was transforming its personal privacy plan for the first time given that the acquisition to allow Facebook to see the telephone number that a customer shares when they register for WhatsApp. Facebook can use this info to enable businesses to contact customers straight through WhatsApp, as they can already do with Carrier, and will certainly enable Facebook to show even more relevant advertisements to logged-in users. However, WhatsApp claimed it would not share these phone numbers straight with users.

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

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