Facebook Paid $715 Million for Instagram

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dxwarlock

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Even if the stock value was $0 now compared to when they got it $300 million was too much to pay for it.

I mean really..3/4 of a BILLION dollars, for a photo website?
 

metro2003

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I don't get it. $194 + $300 = $494. what happened to the rest up to $715. Someone's walking around with $221 in their pocked !
 

ddpruitt

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So they didn't actually pay $715 million for instagram, they paid $300 mil. They also gave them stock, something Facebook didn't buy, pay for, or have to work for.

I love how business types create money out of thin air, no wonder the economy's in trouble.
 

webbwbb

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[citation][nom]ddpruitt[/nom]So they didn't actually pay $715 million for instagram, they paid $300 mil. They also gave them stock, something Facebook didn't buy, pay for, or have to work for. I love how business types create money out of thin air, no wonder the economy's in trouble.[/citation]
They had to work quite hard for it actually. That is giving them ownership of a portion of Facebook. Its like saying that if someone gave you land and materials to build a house and you went through the whole process of building it, then sold it, that you were making money out of thin air without working for it.
 

Alphi

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Its like saying that if someone gave you land and materials to build a house and you went through the whole process of building it, then sold it, that you were making money out of thin air without working for it.
that's not how it works at all.. stock deals aren't taking any stock away from anyone they just print more stock i.e. make more stock out of thin air.

its like saying "hey everyone grab a hand full of dirt and throw it in the ocean.. ah now we've made more land that we can give to this guy"

each persons land dimensions remain the same.. they are all just devalued slightly because they took some dirt away from it to make new land.

 

ddpruitt

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[citation][nom]webbwbb[/nom]They had to work quite hard for it actually. That is giving them ownership of a portion of Facebook. Its like saying that if someone gave you land and materials to build a house and you went through the whole process of building it, then sold it, that you were making money out of thin air without working for it.[/citation]

To use your house analogy it's like me spending $100 mil buying land (IP) and building a suburb (website). Then I loan you a house (stock) so you can do some work for me (Instagram). Then I say I paid you $500 million because that's how much the house is worth. See the problem now?

In fact it makes even less sense because the amount paid varies depending on the day, season, mood of the shaman etc.
 
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