Facebook Paid $715 Million for Instagram
A little less than the rumored billion.
Earlier this year, Facebook announced that it had acquired popular photo-sharing service Instagram. Though the company didn't reveal the financial details of the deal, the rumored price was a billion dollars in cash and stocks. Today, the company finally spilled the beans on just how much it will drop on the acquisition.
The Next Web points to a 10-Q filing with the SEC that reveals the deal for Instagram was $300 million in cash and 22,999,412 shares. In the run up to Facebook's hotly-anticipated IPO, this put the value of the deal was put at a cool billion. However, as we all know, things haven't exactly been smooth sailing for Facebook since its initial public offering. Because Facebook shares have fallen, so too the price Facebook will pay for Instagram.
According to TNW's Alex Wilhelm, the price of 12 million vested shares of Class B common stock for "non-employee stockholders" and 11 million un-vested shares for Instagram employees comes to an "aggregate fair value of $194 million." Throw in the $300 million in cash and the total for the deal is $715 million.
Along with Instagram, Facebook also runs its own photo app called Facebook Camera. The application is designed to make capturing and sharing photos with your Facebook friends even easier and, like Instagram, there's a bunch of different filters and editing tools to jazz up your pictures before uploading them.