Facebook's $1B Instagram deal: $300M in cash, rest in stock
Facebook amended its S-1 today, spelling out some details about its blockbuster purchase of Instagram.
In its amended S-1 filed today with the Securities and Exchange Commission, Facebook breaks down the details of its $1 billion purchase of Instagram earlier this month, revealing that it's paying $300 million in cash and the rest in stock.
The basic terms of the deal had been reported by The New York Times, but now we see the official numbers. In addition to the $300 million in cash, Facebook is paying 23 million shares of common stock, valued at $30.89. All told, that comes to about $1 billion -- although the value will vary depending on what happens with Facebook's stock once it goes public.
Facebook said in the document what its CEO Mark Zuckerberg wrote in the announcement when it did the deal: that the company would run Instagram as an independent product to beef up Facebook's photo product offerings and help increase the time mobile users spend on Facebook.
Already, more and more people are using Facebook via a mobile devices, be them smartphones or tablets. The latest S-1 says that Facebook's monthly active mobile users -- people who access Facebook from a mobile device once a month -- stood at 488 million in March. As of April 20th, that figure climbed past 500 million.