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Facebook's Instagram deal is worth just $738 million, far short of the $1 billion-plus from a few months ago

Facebook-Instagram deal is continuing to devalue, was $1 billion-plus, is now sitting at $738 millio

By Anthony Garreffa on Aug 20, 2012 01:31 am CDT - 0 mins, 54 secs reading time

When Facebook's acquisition of Instagram happened, which took just a weekend to happen, it was valued at over $1 billion. This was mainly because the social network's stock prices were quite high pre-IPO, and the deal with Instagram included $300 million in cash, and 22,999,412 shares of Facebook, valued at $38 a piece.


We've seen how the Facebook shares have tanked, yes I've used the word again, and continue to do so. This has had a ripple effect on Instagram, with the first trade of Facebook coming in at a now incredible $42.05, with the same shares now trading at a paltry $19.05 on Friday. This is a huge 41.88% difference between the first trade, and Friday's pricing.

This means if we include the $300 million in cash Instagram will take, as well as the near-23 million shares, the deal is sitting at just $738.1 million. As you can see, $738 million compared to over $1 billion is quite the difference in just a couple of months.

Did you buy shares in Facebook, if so, have you sold them yet, or are you holding on for a glimmer of hope?

Anthony Garreffa

ABOUT THE AUTHOR - Anthony Garreffa

Anthony is a long time PC enthusiast with a passion of hate for games to be built around consoles. With FPS gaming since the pre-Quake days, where you were insulted if you used a mouse to aim, he has been addicted to gaming and hardware ever since. Working in IT retail for 10 years gave him great experience with high-end, custom-built PCs. His addiction to GPU technology is unwavering, and with next-gen NVIDIA GPUs about to launch alongside 4K 144Hz HDR G-Sync gaming monitors and BFGDs (65-inch 4K 120Hz HDR G-Sync TVs) there has never been a time to be more excited about technology.


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