Facebook pays for Instagram 300 Mio $ in (real) cash and 700 Mio $ in shares (each with nominal value = 0.000006 $ combined with an imaginary value = 29.999994 i$ made of shareholder’s profit expectation).
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Originally shared by Peter Bretscher
Instagram – Facebook:
Virtual (imaginary) money [i$] printing, stupid
one share, nominal (real) value = 0.000006 $
expected (real) share price about = 30 $
Making (imaginary) money/value [i$] out of thin air = 29.999994 i$
I would not pay real money for such a proportion of real and virtual value.
http://venturebeat.com/2012/04/23/facebook-instagram-deal-breakdown/
http://venturebeat.com/2012/04/23/facebook-instagram-deal-breakdown/