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FTC Approves Instagram Acquisition
- ajaimk 14y agoThe real question is do the Instagram founders, employees and investors still approve of the acquisition?
- jonursenbach 14y agoThey're still getting hundreds of millions of dollars for a zero revenue product. If they don't approve at this point, they're idiots.
- joering2 14y agoWhat a stupid thinking, overfilled with greed. If I give you $100 million to kill your friend and you say "no" -- is that making you an idiot?? I am asking seriously.
- memnips 14y agoThe deal is now worth $747 million. Congrats, Instagram. :)
- calvinlough 14y agoAt the bottom of the press release: "Like the FTC on Facebook, follow us on Twitter..."
- jrockway 14y agoHow dare the US government use the products of US companies!
- aresant 14y agoKeep seeing that the deal is "now worth $747 million" No, it was always $300,000,000 in CASH plus 22,999,412 FB SHARES. That amount of shares happens to be around 1% of FB's stock. I love those numbers. Can you imagine the brass balls it took to ask for 1% of FB a month before they IPO'd on top of $300m cash? That is an even more fun headline than "Acquired for $1b". Stupid media.
- eoghan 14y agoAFAIK they asked for $2B and Mark talked them down to $1B with the majority in stock.
- citizens 14y agoAFAIK they only expected 500MM
- dennisgorelik 14y agoFB market cap is $41.65B, so 1% is $417M. $300M cash + $417M stock = $717M total. That's $283M short of $1B number familiar to the public.
- ChuckMcM 14y ago2140M shares outstanding 23M shares in the deal 23/2140 is 1.0747% (at least according to bc(1))
- memnips 14y agoI was the "now worth $747 million" commenter! I mean - at closing today - it's worth that. As in, if they could sell their newly owned stock today that's what they would have. The original deal was "valued" at $1bn. It closed at a value closer to $747 million. Instagram is doing just fine either way.
- ChuckMcM 14y agoI think you missed the parent's point here, the deal was 300M cash and 1% of Facebook. It is still that as far as I can tell. It was reported as a $1B deal because if you did the math at the time that was what you got. Now in say 5 years if you do the math again you will get another number, could be a bigger number, could be smaller, but it will still be 1% (caveat new stock issuing). You could say it was a 70 degree deal on the 9th of April because that was the temperature in Palo Alto then but only a 63 degree deal now. Ok, that's a silly way to measure it but it illustrates the point the parent was making.
- mrjbq7 14y agoWhy is this news? Did anyone really think that it wouldn't get approved?
- finkin1 14y agoAny idea what was pulled in the brackets? "Facebook proposes to acquire Instagram through [ ]."