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Facebook's Instagram deal was good after all

by on20 August 2012


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. 

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.

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