In Silicon Valley, we no longer say a billion dollars. We just say “one Instagram.”With Facebook shares now trading, we’ll have to revalue that currency. Instagram is now worth $1.243 billion—which is about what we expected.
Facebook struck a deal to buy Instagram in April for $300 million and just under 23 million shares. Those shares are now worth $943 million. (Of course, the deal hasn’t closed yet, and regulators are looking into it.)
At that value, Instagram is now worth more than:
- Jack in the Box, purveyor of fine chicken teriyaki bowls and hamburgers.
- The Finish Line, an athletic-apparel store.
- P.F. Chang’s, the Chinese fast-food chain.
- Zillow, the online real-estate website.
- TiVo, the digital video-recorder company.
- And Netgear, the wireless router maker.
Keep in mind that Instagram founder Kevin Systrom originally asked for $2 billion for Instagram—even though it was a tiny company with no revenues. Facebook CEO Mark Zuckerberg talked him down, arguing that Facebook stock would appreciate.
$243 million down, $757 million to go, Zuck.