The social networking giant paid $300 million in cash for Instagram and about 23 million shares of common stock. In addition, Facebook has agreed to pay a $200 million termination fee to Instagram if the government blocks the deal or if either party terminates the agreement before Dec. 20, according to the filing. Given the stated $1 billion value of the deal, Facebook is assuming a stock price of about $31.
The $31 share price had been mentioned in previous reports, which used the price to calculate Facebook's market capitalization at around $75 billion. However, if Facebook's stock price goes to $40 -- a figure closer to how it was trading in the secondary markets -- then the company's market cap could be as high as $104 billion. Facebook's IPO is set for May 17, according to reports.