I think we all know the much over hyped Facebook floating a few months ago is a flop.  Shares peaked at $38 on the day but now hover at almost half that value.

Spare a thought for the guys from Instagram, who have seen the value of the buy-out by Facebook slump too.

When Facebook agreed to buy Instagram, the photo sharing app, they struck a deal valuing the sale at $1bn.  Later it became clear that this was made of $300m in cash and the rest in Facebook shares.  At its peak the balance of shares would have added $200m to the fund, valuing Instagram at $1.2bn.  However, back in the real world (today) the poorly performing Facebook shares now value Instagram at around $735m.

The deal is still awaiting final clearance from US regulators and I am sure Instagram wish it to settle soon before the shares fall even lower!

In other news, Peter Thiel, the cofounder of PayPal, has sold  more than 20 million shares in Facebook, leaving him about 20% of his original holding.

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