Why Did Facebook Buy Whatsapp New Updated 2019
So our asked Equilar, a company that focuses on analyzing exec settlement and business data, to assist us take a look at all the Stocks and also Exchange Payment filings related to Koum's sales for 2016.
Why Did Facebook Buy Whatsapp
It turns out he's sold more than 22 million shares worth roughly $2.8 billion given that January.
Facebook consented to get WhatsApp in February 2014 for over $19 billion in supply, and also the cost had actually gone up to $22 billion by October, when the bargain closed, thanks to Facebook's increasing stock cost. Koum owned regarding 45% of the firm when he sold it, Forbes approximates, which suggests 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 annual proxy declaring, Koum had over 60 million shares of ordinary shares. He also had an additional 19 million limited stock systems, which vest gradually and also act as a reward for him to stay till November 2018.
Based upon that vesting schedule, it resembles he's made concerning 3 countless those RSUs until now this year.
So generally, he's sold about one-third of his present stake in Facebook this year.
Koum's supply sales come as WhatsApp remains to grow rapidly and as the firm is making changes to the service that can open up new moneymaking possibilities, however likewise risks estranging some customers.
On Thursday, Facebook introduced that WhatsApp was altering its personal privacy plan for the very first time because the purchase to enable Facebook to see the contact number that an individual shares when they register for WhatsApp. Facebook can use this information to enable services to contact users directly through WhatsApp, as they can already do with Messenger, and will certainly permit Facebook to show more relevant ads to logged-in individuals. Nevertheless, WhatsApp claimed it would certainly not share these contact number directly with customers.
WhatsApp passed more than than 1 billion monthly individuals in February as well as is the most prominent chat app in more than half of the world, according to recent stats from SimilarWeb.
Facebook had no comment on the sales, as it doesn't discuss peoples' financial investment decisions.