Why Did Facebook Buy Whatsapp 2019

Why Did Facebook Buy Whatsapp - WhatsApp cofounder Jan Koum, that marketed his company to Facebook in 2014, has been unloading Facebook supply at a steady clip under a prescheduled trading plan, with new sales several times a month, since February 2016.

Facebook Buys Whatsapp

So our asked Equilar, a business that concentrates on examining executive compensation and business data, to aid us check out all the Securities as well as Exchange Commission filings pertaining to Koum's sales for 2016.

Why Did Facebook Buy Whatsapp


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

Facebook accepted buy WhatsApp in February 2014 for over $19 billion in stock, and the price had increased to $22 billion by October, when the deal closed, thanks to Facebook's rising supply rate. Koum possessed regarding 45% of the business when he sold it, Forbes estimates, which means his take on paper was about $10 billion. He also got a seat on Facebook's board.

At the end of 2015, according to Facebook's yearly proxy filing, Koum had over 60 million shares of ordinary shares. He likewise had one more 19 million restricted supply devices, which vest gradually and also work as a motivation for him to linger until November 2018.

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

So in general, he's offered about one-third of his existing risk in Facebook this year.

Koum's supply sales come as WhatsApp remains to grow rapidly and also as the business is making changes to the solution that might open new moneymaking possibilities, but also runs the risk of pushing away some users.

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 contact number that an individual shares when they enroll in WhatsApp. Facebook can use this details to enable companies to call individuals directly with WhatsApp, as they can currently do through Messenger, as well as will allow Facebook to show even more appropriate advertisements to logged-in users. However, WhatsApp claimed it would not share these phone numbers straight with individuals.

WhatsApp passed more than than 1 billion month-to-month individuals in February as well as is the most popular chat app in over half of the globe, according to current statistics from SimilarWeb.

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