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 discharging Facebook supply at a steady clip under a prescheduled trading plan, with new sales numerous times a month, given that February 2016.

Facebook Buys Whatsapp

So our asked Equilar, a firm that specializes in evaluating executive compensation and corporate information, to aid us analyze all the Stocks and Exchange Payment filings pertaining to Koum's sales for 2016.

Why Did Facebook Buy Whatsapp


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

Facebook consented to purchase WhatsApp in February 2014 for over $19 billion in supply, and the cost had actually risen to $22 billion by October, when the bargain shut, thanks to Facebook's rising supply rate. Koum possessed about 45% of the company 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 yearly proxy filing, Koum had over 60 million shares of common stock. He likewise had another 19 million restricted supply devices, which vest gradually and also serve as a reward for him to stay until November 2018.

Based upon that vesting schedule, it resembles he's made regarding 3 million of those RSUs until now this year.

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

Koum's stock sales come as WhatsApp continues to grow rapidly and also as the company is making changes to the service that might open new moneymaking opportunities, however also takes the chance of alienating some customers.

On Thursday, Facebook announced that WhatsApp was changing its privacy policy for the first time because the procurement to allow Facebook to see the telephone number that a user shares when they register for WhatsApp. Facebook can utilize this info to allow organisations to speak to customers directly with WhatsApp, as they can currently do via Messenger, as well as will enable Facebook to show more relevant ads to logged-in customers. Nonetheless, WhatsApp stated 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 one of the most prominent chat application in over half of the globe, according to current stats from SimilarWeb.

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