Facebooks Instagram Acquisition Now Only Worth $735 Million

The agreement Facebook struck to acquire Instagram in April is starting to look like a bargain. The value of the deal, which was estimated at $1 billion at the time of its announcement, has since dropped to about $735 million.

Facebook agreed to exchange $300 million in cash and 23 million shares of common stock for the mobile photo-sharing app. At that time, Facebook's shares were trading at around $31 per share. Those shares were trading just south of $19 Monday morning, less than half the $38 they commanded on IPO day. As a result, the value of Instagram's sale has dropped by roughly a quarter.

As The New York Times notes, Instagram could have cut a much better deal. Had Facebook or…
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