The headline figure was that Facebook had bought Instagram for $1 billion. That’s not precisely true. Facebook bought instagram for $300 million in cash, and 22,999,412 shares of stock. When Facebook and Instagram signed their deal, that worked out to roughly $1 billion. But then as Facebook geared to go public and upped its price, suddenly Instagram was worth $1.2 billion.
Well at yesterday’s closing price of $31, Instagram’s price tag is back down to close to $1 billion ($1,012,981,772, to be precise).
Given how much Facebook’s stock has been tanking lately, could Instagram end up being worth less than $1 billion? Given that the acquisition is under review by the Feds and could take several months to close, it’s anybody’s guess what it will end up being worth.