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 WhatsApp Founders Own in Facebook Stock

Whatsapp founders Jan Koum and Brian Acton obtained 116 million shares of facebook inventory at the moment value just about $9 billion (roughly Rs. 55,300 crores) when they bought their unprofitable messaging carrier to the social networking leader earlier this month.

The breakdown of the large winners in facebook’s $22 billion acquisition emerged Wednesday in a regulatory filing.

Koum, a Ukraine immigrant who was once living on welfare, reaped the largest jackpot with 76.four million facebook shares now worth $5.8 billion (roughly Rs. 35,600 crores). That makes him facebook’s fourth greatest stockholder at the back of company seamark Zuckerberg and two mutual funds, constancy management and leading edge.

Acton, who worked with Koum when they were each Yahoo Inc. Engineers, owns 39.7 million facebook shares price $3 billion (roughly Rs. 18,400 crores).

More than 45 different whatsapp present and former employees additionally received facebook stock. Wednesday’s filing didn’t specify what number of shares many of the other workers acquired.

In addition to the facebook inventory, Koum and Acton additionally had been paid a large chunk of the $4.6 billion in cash that used to be included in the whatsapp acquisition. The amount of cash that the whatsapp founders got hasn’t been disclosed.

WhatsApp Founders Own Nearly $9 Billion in Facebook Stock

Each Koum, 38, and Acton, forty two, rank among the 200 richest people in the U.S., in step with Forbes’ rankings.

Koum continues to be whatsapp CEO and also sits on facebook’s board of administrators. He is being paid an annual revenue of just $1, but will obtain a further 24.9 million shares of facebook stock with a purpose to vest all the way through the subsequent 4 years. That limited stock is at the moment value about $1.9 billion.

Even if whatsapp ranks among the world’s most popular messaging apps, it hasn’t grew to become a profit yet. The carrier misplaced $232.5 million on revenue of simply $15 million right through the first six months of this 12 months, in keeping with paperwork filed with the Securities and trade commission. Whatsapp earnings primarily comes from an annual subscription fee of 99 cents that kicks in after one year of free provider.

Zuckerberg hasn’t spelled out how whatsapp will earn cash but, a sign that facebook intends to subsidize the provider whereas it tries to increase its reach beyond its current 500 million customers.

Some investors are worried about facebook’s rising costs to pay for the improvement of latest services and products and workers picked up in acquisitions. Facebook expects its bills to rise by means of as so much as 75 % subsequent yr, a charge that would possibly outpace its income increase. That prospect rattled traders, causing facebook’s inventory to shed $4.91, or 6 %, to at $75.86 Wednesday.