To say it was a good week at WhatsApp would be a major understatement! When Facebook purchased the messaging app for a whopping $16 billion (plus a possible $3 billion more), early employees got great a payday as well.
Facebook will pay the purchase amount with $12 billion in stock, $4 billion in cash, and $3 billion in stock grants for WhatsApp staff that will vest over the next four years, reports Business Insider.
The $12 billion in stock and $4 billion in cash will be split among WhatsApp owners (including Jan Koum, above) and WhatsApp employees who own a piece of the firm.
According to Forbes, “Early employees are said to have comparatively large equity shares of close to 1 percent.”
So when you do the calculations, one percent of $16 billion comes to $160 million each.
While we’re sure they are celebrating over at WhatsApp, the folks at Facebook are probably a little somber this morning. The company’s stock fell five percent after hours following its purchase of WhatsApp, reports TechCrunch. (It’s up more than three percent as of the last NASDAQ numbers we saw this afternoon, to just above $71.) Facebook CEO Mark Zuckerberg and WhatsApp CEO Jan Koum calmed down investors in a joint phone call and the share price up picked up a bit.
“They discussed how WhatsApp would focus on growth rather than monetization. Zuckerberg said ads were not the right way to monetize messaging services, and Facebook CFO David Ebersman noted that WhatsApp will not prioritize further roll out of the $1 a year subscription fee it currently charges in some but not all countries,” reports TechCrunch.