Today’s Facebook and Instagram Scoops in Summary

Lots of information flying around about the Instagram deal which has been the talk of the town for a while. Here is a summary of the good parts:

  1. Mark Zuckerberg managed and finalized the acquisition deal all by himself—without the involvement of the board.1
  2. Instagram originally wanted a $2B deal.2
  3. The deal was negotiated in three days.3
  4. Instagram was paid 70% in Facebook stocks and 30% cash.4
  5. The deal valued Facebook at above $75B5,
    • which, as high as it sounds, is not the $104B Facebook stocks recently traded at in the secondary market6.

This means the $700M in Facebook stock Instagram was paid7 could be worth 38.7% more, $970.7M, bringing the total acquisition price to around $1.271B. Ceteris paribus and all that.

In other words, use the one-billion-dollar figure lightly, when you refer to the acquisition of Instagram in the future.

Maybe Zuckerberg took a hint from The Social Network; “a billion dollars” does sound a lot cooler.