Why Did Facebook Buy Whatsapp 2019

Why Did Facebook Buy Whatsapp - WhatsApp cofounder Jan Koum, who offered his company to Facebook in 2014, has actually been dumping Facebook stock at a stable clip under a prescheduled trading strategy, with brand-new sales several times a month, because February 2016.

Facebook Buys Whatsapp

So our asked Equilar, a firm that specializes in analyzing executive payment and business information, 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 ends up he's offered greater than 22 million shares worth approximately $2.8 billion given that January.

Facebook agreed to acquire WhatsApp in February 2014 for over $19 billion in supply, and also the price had increased to $22 billion by October, when the offer closed, thanks to Facebook's increasing supply rate. Koum possessed about 45% of the company when he marketed it, Forbes estimates, which implies his take on paper was about $10 billion. He likewise obtained a seat on Facebook's board.

At the end of 2015, according to Facebook's annual proxy declaring, Koum owned over 60 million shares of ordinary shares. He additionally had another 19 million limited stock systems, which vest with time and also function as a motivation for him to stick around until November 2018.

Based on that vesting timetable, it appears like he's made about 3 countless those RSUs thus far this year.

So generally, he's marketed concerning one-third of his present 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 could open new moneymaking possibilities, yet additionally risks estranging some individuals.

On Thursday, Facebook announced that WhatsApp was transforming its personal privacy policy for the first time because the procurement to enable Facebook to see the contact number that an individual shares when they enroll in WhatsApp. Facebook can utilize this details to permit businesses to call users straight with WhatsApp, as they can currently do with Messenger, and also will certainly allow Facebook to show more appropriate ads to logged-in users. However, WhatsApp claimed it would not share these contact number directly with customers.

WhatsApp passed more than than 1 billion month-to-month customers in February and also is the most preferred chat app in more than half of the world, according to recent statistics from SimilarWeb.

Facebook had no talk about the sales, as it doesn't comment on peoples' investment choices.