Sydney, Aug 21 (ANI): Instagram’s founders have lost upto 300 million dollars in cash after Facebook purchased it for over a billion dollars.
With the value of Facebook’s shares plummeting since its May IPO, Instagram has also taken a hit.
The social networking giant had purchased photo-sharing app Instagram for over one billion dollars, but the agreement was never for Facebook to pay Instagram one billion dollars in cash, but that Instagram would receive just 300 million dollars in cash and around 23 million Facebook shares, News.com.au reports.
Since Facebook announced the purchase of the app in April, a month before it floated its IPO, the social network’s listing on the stockmarket was bungled, and since then, its share price has plunged almost half, sitting at 20.01 dollars at NASDAQ.
Now, the acquisition is valued at 735 million dollars, making Instagram’s founders suffer a loss of about 300 million dollars, the report said. (ANI)