Facebook Paid $715 Million For Instagram


Facebook’s accountants have been busy and added up all the figures and stock and have confirmed that the final total purchase price of Instagram totals $715 million. According to thenextweb, ‘that figure was arrived at by adding the $300 million in cash that Facebook promised, and the price of 12 million vested shares of Class B common stock. This stock was given to “non-employee stockholders” – investors. Adding to the tally, Facebook has issued 11 million un-vested shares to Instagram’s employees, a pool that includes its founders. These shares will vest over a three year period. They have an “aggregate fair value of $194 million.” Adding the two together, Facebook’s final payment for Instagram totals $715 million.’

So, that’s obviously lower than the touted $1 billion figure but since that announcement Facebook stock has fallen and this has had a lowering effect on the final value of the deal. Still, not a bad turnout for Instagram although some investors might not feel quite so confident.





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