WhatsApp is one of the most popular messaging apps in the world, with over 2 billion active users. But who created WhatsApp and what is his net worth? Here is a deep dive into the riches of WhatsApp founder and former CEO Jan Koum.
The History of WhatsApp
WhatsApp was founded in 2009 by Brian Acton and Jan Koum, both former employees of Yahoo. The app was initially launched for iPhone only and quickly gained popularity as a free alternative to SMS messaging. In 2014, Facebook acquired WhatsApp for an astounding $19 billion – the largest acquisition of a venture-backed company in history.
Jan Koum continued to lead WhatsApp as CEO until his resignation in April 2018. Under his leadership, WhatsApp grew to over 1.5 billion monthly active users and pioneered new features like voice calls and video chats.
Jan Koum’s Early Life
Jan Koum was born on February 24, 1976 in Kyiv, Ukraine. His family immigrated to the United States when he was 16 years old and settled in Mountain View, California. As a teenager, Koum displayed an aptitude for programming and landed an internship at Ernst & Young. He later enrolled at San Jose State University but dropped out before completing his degree.
In the late 1990s, Koum was hired by Yahoo as an infrastructure engineer. It was at Yahoo that he met Brian Acton, who would later become his WhatsApp co-founder. Koum and Acton left Yahoo in 2007 and took a year off from working. During this sabbatical year, Koum bought an iPhone and realized the potential for an internet-based messaging app.
How Did Jan Koum Get Rich?
Jan Koum’s wealth primarily comes from the sale of WhatsApp to Facebook. As a co-founder and major shareholder, he reportedly made $6.8 billion from the $19 billion acquisition deal. His roughly 45% stake in WhatsApp was worth over $9 billion at the time of the sale.
In addition to the windfall from the Facebook sale, Koum also accumulated substantial wealth through his executive compensation packages over the years. As CEO of WhatsApp, he earned an estimated $400 million in salary, bonuses, and stock awards.
Koum also reaped additional gains from Facebook stock awards after the acquisition. He was given $1 billion worth of restricted stock units that vested over 4 years.
Key Details on Jan Koum’s WhatsApp Sale:
- Received $6.8 billion for his 45% stake
- His stake was valued at over $9 billion at the time of sale
- Earned over $400 million in compensation as WhatsApp CEO
- Got $1 billion in vested Facebook stock post-acquisition
Jan Koum’s Net Worth
As of 2023, Jan Koum’s net worth is estimated at $13.7 billion.
The vast majority of his fortune can be attributed to the multi-billion dollar sale of WhatsApp. Even after taxes, Koum likely netted over $4 billion from the deal. His remaining stake continues to accumulate value as WhatsApp grows under Facebook’s ownership.
In addition to his windfall from WhatsApp’s sale, Koum has also built wealth through investments. He has backed prominent startups like Airbnb, investing at least $1 million in the company’s Series B round. Other investments include personal cybersecurity company Wickr and wireless charging startup Energous.
Outside of technology, Koum has channeled funds into substantial real estate holdings. In 2014, he reportedly paid $104 million for a 9-acre estate in Atherton, California. Other high-end residential purchases include a Malibu beach house and multiple homes around Los Altos Hills.
Breakdown of Jan Koum’s Net Worth:
- Over $4 billion netted from WhatsApp sale
- Continued appreciation of Facebook/WhatsApp stake
- Estimated $50+ million in startup investments
- Real estate holdings worth over $250 million
Philanthropy and Other Endeavors
Although intensely private, Jan Koum has donated some of his fortune to charitable causes. In 2014, he gave $556 million in Facebook stock to the Silicon Valley Community Foundation. He has also supported local community organizations and STEM education programs for youth.
After leaving WhatsApp and Facebook in 2018, Koum has kept a low profile. While no longer involved in managing WhatsApp, he continues to serve on the board of Facebook and mentors aspiring entrepreneurs.
With a personal net worth over $13 billion, Jan Koum is able to pursue projects and investments at his discretion. However, he seems to favor living simply, driven more by a passion for technology than by riches.
Conclusion
Jan Koum’s development of WhatsApp transformed online messaging and cemented his status as a tech billionaire. The multi-billion dollar acquisition by Facebook provided him an enormous windfall that continues to grow. Even after leaving WhatsApp, Koum remains heavily invested in Facebook’s success. With a personal fortune of $13.7 billion and ownership stake in one of the world’s most valuable tech companies, Jan Koum is well positioned to exert influence in Silicon Valley for decades to come.