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The Final Price Facebook Paid for Instagram: $715 Million USD

on October 25, 2012 | Facebook | Comments (1)

Facebook recently reported their quarterly earnings and the news is rather positive.

To give you a recap on the most important highlights for their Q3 2012 earnings:

  • Total revenue for the quarter – $1.26 billion USD
  • Year-over-year ad revenue growth accelerated to 36%
  • Ads in Facebook’s news feed make $4 million (USD) per day and 3/4 of this is from mobile.
  • 14% of Facebook’s ad revenue now comes from Mobile
  • Facebook has $10.5 billion in cash and investments ‘in the bank’.
  • Overall for the quarter the company posted a $59 million loss but this is rather negligible.

Now onto Instagram:

From the SEC documentation Facebook have revealed the final price they paid for Instagram – $300 million USD and 12 million vested shares of Class B common stock.

Facebook also gave 11 million un-vested shares to the Instagram employees at time of purchase.

Therefore the deal equates to 22,999,412 shares and $300 million USD cash – coming to a grand total of $715 million USD. So a little less than the $1 billion USD that was first reported, due to the fall in Facebook’s stock price.

It’s good to have a clear picture on the final price paid – a bargain!

Many people are starting to speculate that Instagram is ruffling the feathers more and more over and Twitter as both sites have similar user metrics but Instagram’s growth, engagement and time on site is outgrowing Twitter’s.

In April Instagram has 27 million users globally, now they have over 100 million users.


David Cowling : Editor and Founder of SocialMediaNews.com.au. I also run a Social Media Agency where I do consulting work and another blog dedicated to Instagram news. Connect with me: Twitter | LinkedIn | Google + or contact me here. Alternatively, you can send me an email at david@socialmedianews.com.au

  • Alison Gilbert

    Hello David,
    How are you? I feel like I am missing something about all the to do about Instagram.
    Do you think that facebook believes that they can in some way rival YouTube with Instagram? Or are they planning to do a faux Pinterest too.

    Do you think Instagram has that much appeal to compete with the big boys and girls. I think I need to understand it better.











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