Back in April, Facebook decided to acquire Instagram for a staggering $1 billion. After the acquisition was announced initially, The U.S. Federal Trade Commission (FTC) launched an antitrust investigation that barred the deal from going through. In essence, Instagram hasn’t actually been touched by Facebook yet.
Today the FTC approved Facebook’s acquisition of Instagram, but the deal is worth $747 million instead of the original $1 billion.
The reason for the value decline is because Facebook was paying with $300 million in cash and 22,999,412 in stock. Facebook’s stock value hasn’t performed that well since the social network went awhile ago. As of today the stock is valued at about $447M, so the additional $300 million equals $747 million.
But now that the FTC has given the go-ahead, Facebook is in the clear to gobble up Instagram. Don’t worry, Facebook has promised to keep everyone’s favorite photography app up and running… for now.
Source: FTC [PDF]
Via: The Next Web