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.

Business Insider Emails & Alerts

Site highlights each day to your inbox.

Follow Business Insider Australia on Facebook, Twitter, LinkedIn, and Instagram.