The deal was valued at $1.17 billion which was based on $300 million in cash, plus 22,999,412 shares of Facebook stock at $38 a piece. The only problem is that the value of the deal has been falling ever since Facebook shares started tanking. Facebook closed on Friday at $19.05 and that means that Zuckerburg picked up Instagram for just $738.1 million.
It is possible that Instagram might just pay Facebook $200 million and walk away from the deal, particularly as Facebook shares are expected to go much lower.
Only because Facebook is just rubbish
When the Instagram-Facebook deal was announced, analysts said that the company was overpriced. Facebook CEO Mark Zuckerburg bought Instagram in a deal which was worth a billion dollars.
Published in
Latest
Nick Farrell
E-mail: This e-mail address is being protected from spambots. You need JavaScript enabled to view itLatest from Nick Farrell