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Terms of Facebook's Instagram deal: 30% cash, 70% stock.

the terms of fb's instagram deal--30% cash, 70% stock, term sheet # is about $30 per share, near last internal value-
10:14 AM Apr 18 2012

Stashed in: Silicon Valley!, Facebook!, @evelynrusli

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Evelyn reports that Facebook showed its hand:

Facebook is pegging its own stock price at roughly $30 a share. Based on those numbers, the giant social network is valued at north of $75 billion.

So when Facebook's stock goes up post-IPO, the Instagram deal is potentially worth even more.

Mother of God.

Even more dilution for recent Second Market purchasers to deal with. It will be interesting to see if they would've been better off waiting for the IPO.

Rafe gives three reasons why Facebook could be worth $100 billion: Reach, Dwell, and Lock-in.

I still remember BusinessInsider saying Facebook worth $200 billion by 2015.

Of course, that analyst just ripped off Facebook revenue arguments from my TechCrunch article in 2010.

Evelyn makes two great points:

1. At $104 billion, Facebook is worth more than LinkedIn, Twitter, Groupon and Zynga combined. In 2011, Facebook booked a profit of $1 billion on $3.7 billion in revenue.

2. The Instagram deal, which was described as an “important milestone” by Mr. Zuckerberg, underscores how important mobile has become to Facebook’s ambitions. So why do it at all? Zuck wrote, "Providing the best photo sharing experience is one reason why so many people love Facebook and we knew it would be worth bringing these two companies together."

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