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 trigger a mix. Facebook's (FB) purchase of WhatsApp last year did simply that-- exceeding Google's (GOOG) $3.2 billion purchase of Nest Labs and Apple's (AAPL) $3 billion Beats Electronic devices procurement-- to become 2014's top purchase and among the largest technology purchases of all time.

WhatsApp, a message messaging app utilized commonly across the globe, stole headings with its preliminary $16 billion bid from Facebook. In 2013, the application shed $138 million as well as generated $10.2 million in revenue. So exactly how did the company sway Facebook? This article checks out Facebook's document damaging procurement and the steps it required to get there.

Did Facebook Buy Whatsapp

Did Facebook Buy Whatsapp

It ends up he's offered more than 22 million shares worth approximately $2.8 billion since January.

Facebook agreed to purchase WhatsApp in February 2014 for over $19 billion in stock, and the price had actually gone up to $22 billion by October, when the deal closed, thanks to Facebook's rising stock price. Koum had concerning 45% of the company when he marketed it, Forbes estimates, which suggests 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 yearly proxy declaring, Koum had over 60 million shares of ordinary shares. He likewise had one more 19 million limited stock devices, which vest in time as well as work as a reward for him to stick around up until November 2018.

Based on that vesting routine, it appears like he's gained regarding 3 countless those RSUs until now this year.

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

Koum's supply sales come as WhatsApp continues to grow rapidly and as the firm is making changes to the solution that could open up brand-new moneymaking possibilities, but likewise risks estranging some users.

On Thursday, Facebook introduced that WhatsApp was changing its personal privacy policy for the very first time because 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 permit organisations to speak to individuals straight through WhatsApp, as they can already do via Messenger, and will certainly allow Facebook to reveal even more relevant ads to logged-in individuals. However, WhatsApp stated it would not share these telephone number directly with individuals.

WhatsApp passed greater than than 1 billion monthly individuals in February as well as is one of the most popular conversation app in more than half of the world, according to recent statistics from SimilarWeb.

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