

FB’s Amended S-1: 500M Mobile Users, Paid $300M Cash + 23M Shares For Instagram - tilt
http://techcrunch.com/2012/04/23/facebooks-amended-s-1-500-million-mobile-users-paid-300m-cash-23-million-shares-for-instagram/

======
rollypolly

      "Our ability to acquire and integrate larger or more
      complex companies, products, or technologies in a
      successful manner is unproven"
    

That's very candid.

~~~
ajross
SEC filings tend, amusingly, to be very down on the company filing them.
They're filled with lists of risks, to better fend off the inevitable
shareholder lawsuits. But of course because "everybody knows" the SEC
paperwork is fudged downwards, it gets treated just like marketing material
(which everyone knows is fudged upwards) and ignored.

------
tzz
I am just trying to understand how this works, where did the 23M shares come
from? Did they have to allocate a new share, from reserved share or from some
where else?

------
zwigby
That puts a share of Facebook around $30 if you buy that those 23M are worth
700M.

~~~
bigdubs
The math on the valuation of the shares is a little more complicated than
1000mm - 300mm / 24mm.

The rumor that I heard (need to substantiate somewhere) is that the options
were priced at a Facebook valuation of around ~75bn. It's impossible to
accurately price these options without knowing the total # of Facebook shares
issued so far.

~~~
ajross
Shares come in different classes with different valuations in any case,
there's no single number. Presumably zwigby is talking about the eventual
market price of a post-IPO public share. But of course there's no requirement
that these be issued 1:1 with the existing shares.

------
rafikech
a Lot of changes should be happening soon with Instagram.

