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WhatsApp Founders Become Billionaires In $19 Billion Facebook Deal

Feb 19 2014, 6:30pm CST | by

Facebook just made two more Silicon Valley entrepreneurs into billionaires. On Wednesday, the Menlo Park, Calif.-based company announced a record $19 billion for messaging service WhatsApp. That...

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31 weeks ago

WhatsApp Founders Become Billionaires In $19 Billion Facebook Deal

Feb 19 2014, 6:30pm CST | by

Facebook just made two more Silicon Valley entrepreneurs into billionaires.

On Wednesday, the Menlo Park, Calif.-based company announced a record $19 billion for messaging service WhatsApp. That deal instantly takes WhatsApp cofounders Jan Koum and Brian Acton into the realm of 10-figure fortunes.

FORBES estimates that Koum held about a 45% stake in the company, while Acton’s stake was over 20%.

In a filing with the Securities and Exchange Commission, Facebook said it would be paying for the deal with nearly 184 million shares, $4 billion in cash and nearly 46 million restricted stock units (RSUs), valuing the acquisition at over $19 billion. After disregarding the RSUs, which are not immediately exercisable, and assessing taxes, FORBES estimates that Koum is worth $6.8 billion while Acton is worth at least $3 billion as of Facebook’s closing share price on Wednesday.

Messages left with WhatsApp were not immediately returned on Wednesday.

Facebook has already minted several billionaires, among them Mark Zuckerberg, whose estimated net worth is about $30 billion. Other members of the 10-figure club from the social network’s ranks include cofounders Dustin Moskovitz and Eduardo Saverin; venture capitalists Peter Thiel and Jim Breyer; former president Sean Parker; and most recently Chief Operating Officer Sheryl Sandberg, who became a billionaire last month because of Facebook’s rising share prices.

Aside from Facebook’s chief, WhatsApp CEO Koum will be richer than all of them. At 37, he will join Facebook’s board once the deal closes and will continue to operate the Mountain View, Calif.-based messaging company independently of its parent.

“I’ve also known Jan for a long time, and I know that we both share the vision of making the world more open and connected,” Zuckerberg wrote on his Facebook page. “I’m particularly happy that Jan has agreed to join the Facebook board and partner with me to shape Facebook’s future as well as WhatsApp’s.”

Additional reporting from Parmy Olson in San Francisco and Brian Solomon and Alex Konrad in New York. 

Follow me on Twitter at @RMac18 or email me at rmac@forbes.com.

Source: Forbes Business

 
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4 weeks ago

Khazanah throws MAS RM6b lifeline

Aug 29 2014 5:01pm CDT | Source: Business Times Singapore

August 30, 2014 1:15 AMKHAZANAH Nasional will inject RM6 billion (SS$2.4 billion) over three years to resuscitate loss-making Malaysia Airlines (MAS) under a recovery plan that includes even an Act of Parliament. Other key moves are migrating its operations, assets and liabilities to a new company (NewCo) and slashing the w ...
Source: Business Times Singapore   Full article at: Business Times Singapore
 

 
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4 weeks ago

MAS posts loss of RM307m for Q2

Aug 28 2014 5:00pm CDT | Source: Business Times Singapore

August 29, 2014 1:13 AMMALAYSIA Airlines (MAS) registered a loss of RM307 million (S$122 million) for the second quarter to end-June, but warned of worse to come in the second half when the "full financial impact of the double tragedies of MH370 and ...
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