Facebook's Instagram acquisition deal, once valued at $1 billion, has now lost nearly $300 million as Facebook's stock price has lost nearly half its value since its IPO, according to a report.
The deal, which was announced by Facebook CEO Mark Zuckerberg in April, is now worth about $735 million, and that's because Instagram did not negotiate to include any protections in its deal.
When the two companies agreed to the acquisition, the terms included giving Instagram $300 million in cash and the rest in shares — about 23 million of them.
That worked out well for Instagram in the month after the deal was announced. When the two sides agreed on the pact, they valued Facebook shares at $30 a share, and that price increased to $38 upon the company's IPO. The price went up to more than $40 during the first few hours of the stock's trading, but ever since, the price has generally just kept falling.