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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
By: Anthony Garreffa | 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.




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.


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