I live under a rock. Didn’t know Facebook bought Instagram.

facebook money
Credit: TBreak
I knew about FriendFeed. I know about WhatsApp. Causes. But I didn’t have even an inkling that Facebook also owns Instagram. Whoa, I feel dumb. I kinda like Instagram, but what I don’t like is giving Facebook any more information about my life and my preferences than it already harvests (which is a lot – I’m a prolific poster). That’s why I don’t use any of the other FB apps.

Forbes shares a list of 10 Reasons Why Facebook Bought Instagram and Pocket-link tells us what else Facebook owns.

On the topic of how Facebook was able to pay $22B for WhatsApp – or anything. TBreak says it was easy because Facebook can print its own money. Here’s how that works:

So how exactly is Facebook going to pay 22 billion dollars? The same way they acquired Instagram. Facebook is blessed with the ability to print its own money. Before you all get really excited and start breaking out your printers to try and print some money – I mean “shares”. Facebook intends to foot the bill using a mixture of hard cold cash and Facebook stocks. It’s because the latter has risen in value that the acquisition is now 22 billion dollars. Around $5 billion and nearly 200 million shares of Class A common stock will go to WhatsApp shareholders whilst WhatsApp employees (there are only 55 of them) will have to split 46 million shares of restricted stock units between themselves.

Thanks @sonofbaldwin for the heads-up.

4 Replies to “I live under a rock. Didn’t know Facebook bought Instagram.”

  1. One day you can get my full social commentary I’m pretty sure you’ll enjoy. Ps this is why I hate the way school teach kids all these Unicorn/ Decacorn conversation and never and conversation in the classrooms as to why and what it means.

  2. Kimi yes I speak of valuation all the time and have had many Social Media conversations on acquisitions IE FB /INSTAGRAM aquihires YAHOO TUMBLR and soon Google or maybe even Microsoft buy Twitter. But, right now FB has best management team with Sandberg/Zuckerberg I believe they are just getting started.

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