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Facebook Ended Up Paying Less Than $750 Million For Instagram

Facebook Ended Up Paying Less Than $750 Million For Instagram

InstagramMark Zuckerberg and company originally agreed to pay $1 billion for social photo sharing company Instagram but ended up paying far less.

Purchased in April the social world was abuzz with news that Zuckerberg purchased the company without first talking to his board of directors.

In a quarterly investment report that was filed on Wednesday?with the Securities and Exchange Commission Facebook added 11 million shares to its total. Those new shares are valued at $194 million and were given to Instagram employees at the close of the September deal.?

Already included in the purchase was $521 million which included $300 million in cash and 12 million shares of stock for “non-employee” stockholders.

Instagram would have been given more money if stock prices had not tanked. When Facebook announced the deal in April company shares on the private market were valued at $30.89. Stock prices were cut in half after less than stellar earnings and a disastrous Nasdaq IPO.

Instagram?s user base has grown from 27 million at the time of its acquisition to more than 100 million users today.

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Do you think Instagram is worth the $715 million its founders, investors and employees have received?



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