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...
Sign up for Dan's daily email newsletter on deals and deal-makers: GetTermSheet.com
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
|GM's recalled Cobalt was a failure from the start|
|Pope Francis challenges the free market - The Buzz|
|Why you should pay off your car loan ASAP|
|Americans have fallen in love with real estate once again|
|Your Internet security relies on a few volunteers|