

The Instagram/Facebook deal: 30% cash, 70% stock at 75+ billion valuation - tilt
http://thenextweb.com/insider/2012/04/18/the-instagramfacebook-deal-30-cash-70-stock-at-75-billion-valuation/

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AznHisoka
The more these tech bloggers cover trivial apps such as Instagram, the more
people will make these type of apps rather than work on hard problems like
healthcare or education.

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InclinedPlane
Education expenditures in the US in 2010: $901 billion

Health care expenditures in the US in 2010: $2.6 trillion

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kirpekar
So Instagram was about as valuable as Ducati (sold to Audi recently for 1.1B)?

Yeah right.

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lbrandy
I can't believe in 2012 the #1 comment on a topic like this is comparing the
valuation of a tech startup to an established brand in a completely different
industry, and then appealing to the crowd's incredulity.

Have we not yet learned how terrible this particular argument is, has been,
and will continue to be?

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kirpekar
Perhaps you can elaborate why this is a terrible argument?

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chmike
This looks like a strange and risky deal. I've heard someone in Germany making
a similar deal. He sold his company mostly in shares of the buyer's company.
Then came the 2000 bubble and the shares had not worth anymore.

The next year the IRS showed up knocking at his door. He owned them the IRS
percentage of the selling price of the previous year (year of selling) and not
of the current year. Today he is still working as an employee trying to pay
back his debts.

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vidarh
If a deal like that is structured even remotely sensibly then it will be a
"merger" where the part that's in shares does not qualify as a purchase and
does not trigger any taxes until the new shares are sold.

If anything, a story like that, if true, is a demonstration of why you get
lawyers involved, nothing more.

Part shares, part cash deals are extremely common.

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citricsquid
Does the S-1 and other stuff relating to the IPO state how much cash Facebook
has / had?

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qq66
Yes, as of the S-1, $3.9 billion in cash and equivalents.

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dzuc
So Facebook is about a half a percent of the US GDP:
75000000000/15094025000000 = 0.4969%

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beagle3
Check your units: GDP is $/year; your Facebook is $; $/($/year) = year. You
should end up with a result in years, not in percent (which is unitless)

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ajross
"The USA produces 200 facebook-equivalents a year" doesn't have the same
impact, I guess.

