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.