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FaceBook - Instagram #Fail - Not a Billion $ Deal

Discussion in 'BlackHat Lounge' started by shailzrocks, Oct 25, 2012.

  1. shailzrocks

    shailzrocks Jr. Executive VIP Jr. VIP Premium Member

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    Facebook is paying well under the $1 billion price tag originally agreed upon for Instagram back when it acquired the mobile photo sharing app in April.


    The final price tag ? $715 million ? was revealed in a quarterly investment report, filed Wednesday. According to the filing with the Securities and Exchange Commission, Facebook added 11 million shares ? valued at $194 million ? for Instagram employees at the close of the deal in September. The deal already included $521 million, consisting of $300 million in cash and 12 million shares of stock for non-employee stockholders.


    Facebook?s overall performance in the stock market has disappointed, explaining the lower ticket on Instagram. The deal was arranged when Facebook stock was valued at $30.89 in April, before its May IPO.


    Source

    PHP:
    http://mashable.com/2012/10/24/instagram-facebook-price/
     
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  2. dubious

    dubious Regular Member

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    I never understood why Instagram sold for what it did. Was there any specific patents they had which would inflate their worth?
     
  3. zenoGlitch

    zenoGlitch Executive VIP Jr. VIP Premium Member

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    In more recent news, Facebook buys a goat farm in italy for $515 million dollars. The farmers claimed the goat bladders were the key to keeping Zuckerberg young, beautiful, and 28 for the rest of his life.
     
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