Two articles caught my attention relatively to the Facebook acquisition of Instagram:
– By The Numbers: Facebook’s $1 Billion Acquisition Of Instagram may mean that we are in a new speculative bubble. There were 37 $1B acquistions since 1992 of venture backed companies and already 3 in 2012…
Instagram co-founders Kevin Systrom, chief executive (right), and Mike Krieger at the company offices in San Francisco. Photo: New York Times / Redux / eyevine
– Who’s getting rich from Facebook’s $1bn Instagram deal? shows that it makes 10+ happy people! And using these data, here is my cap. table. I have to admit that the numbers are also speculative but based on the previous article, they kind of make sense.
More info on http://articles.businessinsider.com/2012-04-18/tech/31359622_1_instagram-acquisition-facebook-stock-facebook-s-ipo
“Last week, Instagram was acquired by Facebook for $1 billion, or so we thought.
Today we’re learning, it was really worth much more. The New York Times reports it was a 70/30 split — 70% of the $1 billion deal was Facebook stock, 30% was cash. Instagram got $700 million of Facebook shares at $30 a share, which means Facebook is internally valuing itself at $75 billion. That’s a low-balled valuation. Everyone expects Facebook’s IPO valuation to be near $100 billion.
That means the shares will be worth $933 million. ($700 million at $30 a share = 23 million shares. 23 million shares at $40 a share = $933 million.)”
That’s obviously unless WS screws up their IPO by under-evaluating shares, in which case they could end-up with much less than 1B
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