Facebook’s Instagram Deal Worth $715M; $87M Spent On Other 2012 Acquisitions

By David Cohen 

Facebook’s $1 billion deal to acquire Instagram was actually a $715 million deal to acquire Instagram, as the social network’s slumping stock price lowered the value of the major component of the deal for the photo-sharing application, Facebook revealed in its 10-Q filing with the Securities and Exchange Commission.

The original terms of the deal called for Facebook to pay $300 million in cash, and the remainder in vested class-B common stock, but the social network’s share price plummeted immediately following its May 18 initial public offering, dropping the value of the shares to $221 million.

When the transaction closed in September, Facebook added 11 million unvested shares for employee shareholders of Instagram, adding $194 million to the $521 million tab.

Facebook said in its 10-Q that it spent $87 million on other 2012 acquisitions through Sept. 30, including Tagtile, Glancee, Karma, Face.com, and Threadsy.

And sister blog Inside Facebook pointed out that the social network also completed a number of acqu-hires during the time period, in which it hired high-level employees but did not purchase their respective companies, including Momentus Media, Lightbox, Bolt Peters, Pieceable Software, Spool, Acrylic, and Carsabi.

Readers: Other than Instagram, which acquisition or acqu-hire during the first nine months of 2012 do you think will be Facebook’s most important?