FORTUNE -- Facebook today rolled out its Instagram video product, 14 months after first acquiring the mobile photo-sharing app.
Investors reacted kind of like you'd expect them to act when you hype a "mystery" product launch that: (a) Leaks early, and (b) Is basically a knock-off of what Twitter was already doing with Vine.
Facebook (FB) shares finished the day down 1.64%, to close at $23.91 per share.
That means Facebook lost $968 million in market cap today. Obviously we can't attribute all of that to the Instagram video launch -- the broader markets took a tumble too -- and Facebook obviously believes there is long-term value here.
But if you play out the simple top-line, Facebook lost around 26% more value today than it spent on Instagram in the first place.
Or, put another way, Facebook spent money to lose money. At least for now...
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Are social photo apps laying out the roadmap for killing off companies like Getty?
FORTUNE -- Some Instagram users are in full-filtered panic mode today, after the digital photo-sharing company altered its terms of service. Basically, Instagram will allow sponsors to promote user content and associated data. So if you upload a photo of your Awesome Pretzel Chicken Tenders, don't be surprised to see it featured in the Instagram feed of Guy Fieri's American MOREDan Primack - Dec 18, 2012 3:57 PM ET
Staring way up at $1 billion.
FORTUNE -- "You never know, it could be the next Instagram."
I have heard that line, or some variation thereof, from venture capitalists more than a dozen times since Facebook (FB) agreed to acquire the mobile-sharing site back in April for "$1 billion." It's supposed to mean that overpaying can sometimes pay off, and that big returns aren't always predicated on helping to build large, sustainable businesses.
But MOREDan Primack - Aug 2, 2012 4:15 PM ET
Facebook's share price drop affects Instagram price.
FORTUNE -- Lots of talk this week about how Facebook (FB) is interested in acquiring Norwegian browser developer Opera, with some writing about how it would be the social network's "second $1 billion acquisition." Actually, it would be the first.
Facebook's planned purchase of Instagram is now valued at $948 million, based on Facebook's closing price on Wednesday of $28.19 per share. The deal included MOREDan Primack - May 30, 2012 4:48 PM ET
Whiny bankers snipe at Facebook.
Facebook is getting some grief today for choosing to buy Instagram before going public, rather than waiting to make the $1 billion purchase until after its IPO.
From the New York Post:
The timing of that pricey purchase — coupled with a fresh bout of uncertainty in the stock markets — has raised eyebrows on Wall Street, where it is rare for a company to make such a MOREDan Primack - Apr 11, 2012 1:10 PM ET
By Don Dodge, contributor
Facebook yesterday announced that it will pay $1 billion to acquire Instagram -- a company that is less than two years old, has no revenue and about a dozen employees. Remember, acquisitions are about what the acquirer can do with the company in the future, not some multiple of revenues or profits today. So why is Instagram worth $1 billion?
Facebook acquired Instagram for about $30 per user, or $1 billion. ($30/user X MOREApr 10, 2012 9:56 AM ET
Why Facebook is buying Instagram.
Last week, mobile photo-sharing site Instagram raised $50 million from venture capitalists at a $500 million valuation. Today, the company agreed to be acquired for $1 billion by Facebook.
So what happened in the intervening days?
For starters, the venture capital round had been in the works for more than a month. In fact, the Wall Street Journal reported the deal back on March 9. But when the MOREDan Primack - Apr 9, 2012 3:03 PM ET
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