“At that level, Facebook is pegging its own stock price at roughly $30 a share,” the Times writes. “Based on those numbers, the giant social network is valued at north of $75 billion.”
So, Facebook thinks its worth about $75 billion, which is lower than bankers have been whispering. It’s expected to be a ~$100 billion IPO.
If it is, in fact, a $100 billion company, then Facebook really paid about $1.23 billion for Instagram.
The New York Times says that while the Instagram deal was based on the lower valuation, the companies discussed the possibility of Facebook being worth as much as $104 billion, a more compelling figure that “helped the Instagram team assess the deal.”
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