The Facebook IPO Makes Instagram Worth $1.2 Billion

Jack in the Box commercial stillBuy Facebook!

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.

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