FTC Approves Instagram Acquisition

http://www.ftc.gov/opa/2012/08/instagram.shtm

by relation • 14 years ago

42 19 14 years ago

ajaimk• 14 years ago

The real question is do the Instagram founders, employees and investors still approve of the acquisition?

They'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• 14 years ago

What 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.

memnips3• 14 years ago

The deal is now worth $747 million. Congrats, Instagram. :)

calvinlough• 14 years ago

At the bottom of the press release: "Like the FTC on Facebook, follow us on Twitter..."

jrockway• 14 years ago

How dare the US government use the products of US companies!

aresant• 14 years ago

Keep 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• 14 years ago

AFAIK they asked for $2B and Mark talked them down to $1B with the majority in stock.

citizens• 14 years ago

AFAIK they only expected 500MM

dennisgorelik• 14 years ago

FB 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.

ChuckMcM3• 14 years ago

2140M shares outstanding 23M shares in the deal 23/2140 is 1.0747% (at least according to bc(1))

memnips3• 14 years ago

I 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.

ChuckMcM3• 14 years ago

I 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• 14 years ago

Why is this news? Did anyone really think that it wouldn't get approved?

finkin1• 14 years ago

Any idea what was pulled in the brackets?

"Facebook proposes to acquire Instagram through [ ]."

FTC Approves Instagram Acquisition

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