The Instagram/Facebook deal: 30% cash, 70% stock at 75+ billion valuation

The Instagram/Facebook deal: 30% cash, 70% stock at 75+ billion valuation

Hot of the presses from the New York Times, the numbers that we have all been waiting for: According to the paper, the terms of the Instagram/Facebook deal were as follows:

  • 30% cash
  • 70% stock
  • Stock valued at ‘north’ of $75 billion
  • That puts Facebook’s stock at around $30 a share

Here’s the kicker: The private market last valued Facebook at $104 billion, meaning that the stock that Instagram now holds could be worth about 1/3rd more than what Facebook valued it at, essentially implying that Instagram could make out big in the IPO.

So. Much. Tech.

Some of the biggest names in tech are coming to TNW Conference in Amsterdam this May.

Put another way, Facebook might have effectively paid more than $1,000,000,000 for Instagram. There’s only one remaining question: did Facebook issue more stock to cover the massive purchase? When the company files an amended S-1, we’ll know, but for now, it seems all but certain that Facebook put down $300,000,000 in hard currency for the photo-sharing firm.

That’s big money.

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