Exactly. And stock is typically much cheaper for a company to spend than actual cash. A perfect example of this was the Facebook-Instagram acquisition. It was

Exactly. And stock is typically much cheaper for a company to spend than actual cash. A perfect example of this was the Facebook-Instagram acquisition. It was right before Facebook had their IPO, so it was much cheaper for them. Ironically, since Facebook's share price dropped so quickly after IPO, that billion dollar valuation ended up being closer to $715M source -- http://www.theverge.com/2012/10/24/3551872/facebook-instagram-acquisition-715-million http://www.theverge.com/2012/10/24/3551872/facebook-instagra...