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"Today Facebook detailed the final Instagram purchase information in its 10-Q. The company stated that the final purchase of Instagram will sit in its accounting as $521 million.\r\n\r\nThat figure was arrived at by adding the $300 million in cash that Facebook promised, and the price of 12 million vested shares of Class B common stock. This stock was given to &amp;quot;non-employee stockholders&amp;quot; - investors, it would seem - but not the staff itself.\r\n\r\nAdding to the tally, Facebook has issued 11 million\u00A0un-vested\u00A0shares to Instagram's employees, a pool that includes its founders. These shares will vest over a three year period. They have an &amp;quot;aggregate fair value of $194 million.&amp;quot; Adding the two together, Facebook's final payment for Instagram totals $715 million.\r\n\r\nWhy is that total lower than the previously, and famously reported $1 billion figure? Facebook stock price has declined since that moment. The deal was $300 million in cash, and\u00A022,999,412 shares. In the run up to its IPO, the value of the deal crested the billion dollar mark. However, post-IPO Facebook suffered from a falling stock price, lowering the total value of the deal.\r\n\r\nPart of the deal was a $200 million charge to Facebook if the agreement fell through.\r\n\r\nInstagram surely would have preferred the billion straight up, but $715 million is hardly chump funds. However, investors who put in $50 million at a $500 million valuation aren't going to see their funds double as they had perhaps thought.\r\n\r\nTop Image Credit:\u00A0Jo Jakeman"^^<http://www.w3.org/2001/XMLSchema#string>
<http://thenextweb.com/facebook/2012/10/24/final-cost-to-facebook-to-purchase-instagram-715-million/?awesm=tnw.to_j6gh>