Brian Acton: The Man Who Walked Away From $850 Million

It takes serious balls to walk away from $850 million, but that’s exactly what WhatsApp co-founder Brian Acton did when he left Facebook. Four years ago, Acton and his co-founder Jan Koum sold their messaging app to Facebook for $22 billion. Ten months ago, Acton left Facebook to focus on a nonprofit. On his way out the door, he took a screenshot of the stock price. When the details of the Cambridge Analytica scandal were revealed, Acton sent out one Tweet saying, “It is time. #deletefacebook.” He did not explain. His former employers at Facebook were shocked. He hasn’t sent another Tweet since. Now, Acton is talking. In an interview with Forbes, he discussed the decision that cost him $850 million.

For Acton, it all came down to a clear difference of opinion. Facebook wanted to monetize WhatsApp. Acton and Koum were not opposed to that general concept, but they had a very different way of going about it. Acton and Koum built the end-to-end encryption for WhatsApp and stood by it. Facebook started to question the encryption and how it might affect showing targeted ads to users or inserting commercial messaging. Acton could not get behind that. So he walked away.

Acton never developed a rapport with Mark Zuckerberg. So he wasn’t sure what to expect when he was summoned to Zuckerberg’s office last fall after he told Facebook that he planned to leave. Acton and Koum had a clause in their contract that allowed them to get all their stock, which was structured to be doled out over four years, if Facebook began “implementing monetization initiatives” without their consent. To Acton and Koum, it was a clear case of Facebook doing this and ignoring several options they presented.

Table of Contents

• Biography of Brian Acton
• Background and Early Life
• Journey with WhatsApp
• Conflict with Facebook
• Life After Facebook
• Philanthropic Efforts

Biography of Brian Acton

Brian Acton is known for revolutionizing communication through WhatsApp, which he co-founded in 2009. His journey includes a strong commitment to user privacy and a clear vision of what he believed the platform should be—free from intrusive advertising. His decision to leave Facebook, where he had sold WhatsApp for a hefty sum, was driven by a conflict of values regarding user privacy and monetization strategies.

Background and Early Life

Acton was born in 1972 in Michigan and grew up in California. He attended Stanford University, where he earned a degree in Computer Science. After graduating, he worked for several tech companies, including Yahoo!, where he met Jan Koum. Their friendship laid the foundation for WhatsApp.

Journey with WhatsApp

WhatsApp started as a simple messaging application that prioritized user privacy and security. Acton and Koum designed it with end-to-end encryption, which became the cornerstone of its rapid growth. The app gained immense popularity, leading to its acquisition by Facebook in 2014 for $22 billion.

Conflict with Facebook

After the acquisition, a fundamental disagreement arose between Acton and Facebook regarding monetization. While Facebook aimed to introduce targeted ads and other revenue-generating strategies, Acton and Koum were against such measures, fearing they would compromise user privacy. This clash of philosophies ultimately led Acton to resign from Facebook.

Life After Facebook

Following his departure from Facebook, Acton focused on philanthropic efforts and launched a new messaging app called Signal. He aimed to create a platform that prioritized user privacy above profit, reflecting the values he held during his tenure at WhatsApp.

Philanthropic Efforts

Acton has committed a significant portion of his wealth to charitable causes, particularly in healthcare and education. He believes in making a positive impact on society, especially in impoverished areas of the U.S. His dedication to philanthropy showcases his desire to give back and support essential community initiatives.