TweakTown
Tech content trusted by users in North America and around the world
6,157 Reviews & Articles | 39,564 News Posts

Facebook's acquisition of Instagram cost $715 million in cash and stock in the end

At the end of the day, Facebook's final Instagram purchase cost $715 million in cash and stock

| Business, Financial & Legal News | Posted: Oct 25, 2012 5:28 am

Facebook have unveiled the final Instagram purchase information in their 10-Q. The social network have stated that the final purchase of Instagram will sit in its accounting as $521 million. This figure came about by adding $300 million in cash that Facebook promised, as well as the 12 million vested shares of Class B common stock.

 

TweakTown image news/2/6/26391_04_facebook_s_acquisition_of_instagram_cost_715_million_in_cash_and_stock_in_the_end.jpg

 

This common stock was given to "non-employee stockholders", such as investors, but not the staff itself. Facebook have issued 11 million un-vested shares to Instagram's employees, including founders. These shares will vest over a three-year period which have an "aggregate fair value of $194 million". Adding the $521 million and $194 million together, we find ourselves at $715 million.

 

We did see a $1 billion number floating about when this news hit the wire, but the stock of Facebook has slumped, considerably, since that time.

NEWS SOURCES:Thenextweb.com

Related Tags

Further Reading: Read and find more Business, Financial & Legal news at our Business, Financial & Legal news index page.

Do you get our news RSS feed? Get It!

Got an opinion on this news? Post a comment below!

Latest Tech News Posts

View More News Posts

Forum Activity

View More Forum Posts

Press Releases

View More Press Releases