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So did instagram really get $1Bn? Or did the VCs who own Instagram also own Facebook and so just moved some numbers from one cell in a spreadsheet to another -

So did instagram really get $1Bn? Or did the VCs who own Instagram also own Facebook and so just moved some numbers from one cell in a spreadsheet to another - netting themselves huge amounts of publicity before the Facebook IPO (and probably a tax break somewhere)

gbog 15y ago
Interesting claim, anything to back it up?
- excuse-me 15y ago
  Facebook had an income of about $500M last year and $200M the year before - so I doubt they had $1Bn in cash sitting around to pay in used dollar bills. I imagine some sort of IPO/options/notes financial complexity so no actual folding money changed hands
  - verroq 15y ago
    I'm fairly sure some was paid in facebook stock.
    - gonzo 15y ago
      "cash and stock". I'm sure the VCs are all giddy to own a bunch of pre-IPO Facebook shares.
meric 15y ago
Good point. The Instagram acquisition is only worth $1b is Facebook stock is $1b.