FTC finally approves Facebook that they can now acquire Instagram but the new price will only be $747 Million and not for $1 Billion. Back then (last April 2012 actually) when Facebook announced that they intend to buy Instagram for a whopping $1 billion billion in cash and stocks but that was before Facebook was a public company and that was when almost every investor are drooling to own a Facebook share.

Then FB IPO happened where the FB shares are priced at $38 per share, three months after Facebook IPO, FB share price at $19.44 share price, which explains the why the deal is now “only” worth $747 Million and a difference of more than $250 million. Instagram will received a guaranteed $300 million in cash and 23 million FB shares with is equal to $447 million using FB share current price.

The commission voted 5-0 in favor of the deal. Do you think Instagram needs to re-negotiate the deal (if they can)?

Source: FTC | TechCrunch

About Abiel Abuy

The author and publisher of KabayanTech. I’m also a writer/contributor to Technorati Technology Channel.