If The $1 Billion Acquisition Deal Falls Through, Facebook Owes Instagram $200 Million

Instagram in Vegas

Photo: Jesse Waits

Today Facebook amended its S-1 filing.In it is this juicy tidbit:

If, for some reason, the Instagram acquisition deal doesn’t close (it’s expected to next quarter), Facebook owes Instagram a $200 million termination fee.

If all goes according to plan, Facebook will acquire Instagram for approximately 23 million shares of its common stock and $300 million in cash.

From the revised S-1:

We have agreed to pay Instagram a $200 million termination fee if governmental authorities permanently enjoin or otherwise prevent the completion of the merger or if either party terminates the agreement after December 10, 2012.

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