On Friday, news came that Facebook has officially closed the deal on its acquisition of Instagram.
After five months of negotiations and regulatory review processes, the photo-sharing application is now in the Facebook family.
As MMW covered at the time of the deal’s announcement, Facebook agreed to acquire the popular photo sharing platform for a whopping $1 billion, which includes roughly 23 million shares of Facebook stock.
Unfortunately, between April (when the deal was made) and this, Facebook’s share price has fallen substantially. As a result, the value of the Instagram acquisition has tumbled from $1 billion down to well below $800 million
Put differently, the shares of stock offered to Instagram as payment have lost more than $200 million in value since the acquisition was agreed to by both parties earlier this year.