Facebook has just finished a deal to acquire Instagram. The compensation will be approximately $1 billion in cash and stock. Instagram will remain a standalone app from Facebook. In its largest acquisition to date, the social network has purchased Instagram, the popular photo-sharing application, for about $1 billion in cash and stock, the company said Monday.Facebook CEO Mark Zuckerberg announced the acquisition in post on his Facebook Timeline Monday. The sale is expected to close later this quarter, and will bring the staff of Instagram to the social network.
This intent to acquire means that it took roughly 551 days fromInstagram’s launch to its sale for $1Bn. This is incredible growth for a tiny company that only has 13 employees. The transaction will go through some time later this year and makes the deal worth roughly $33 per Instagram user.
With Instagram, Facebook will get a formidable mobile player – an area that is seen as a weakness for the sprawling social network. Founded two years ago, the service — which lets users share photos and apply stylized filters – has become one of the most downloaded applications on the iPhone, with some 30 million users. Instagram released a version of its application for Google’s Android operating system last week.