With the recent purchase of Instagram by Facebook, it became apparent just how valuable Facebook is. By spending one billion dollars for the new company, Facebook made a very obvious hint at just how much it is worth.
Facebook bought Instagram with 30% money and 70% stock options. Facebook stock is projected to be about $30 each share. Experts say that based on those stats, the social media website is expected to be worth at least $75 billion.
However, rumors coming out of the private negotiations between Facebook and Instagram show that Facebook shares are actually projected to be about $40 a share. This makes Facebook worth an approximate $104 billion according to sources.
If the projections turn out to be true, Instagram officials could turn out to be very rich. And if the integration of Instagram into Facebook works out as well as hoped, the deal could end up fattening the wallets of Facebook officials as well. Facebook is already turning out record profit on a yearly basis.
Other rumors coming out suggest that the IPO of Facebook is going to come in the middle of next month. In a month, we will all know exactly where things stand for both companies.
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