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Instagram to be acquired by Facebook for $1B cash and shares, service to remain as-is for now

Facebook is set to acquire Instagram for $1B in cash and shares.

By Trace Hagan on Apr 9, 2012 at 01:32 pm CDT - 1 min, 12 secs reading time

The insanely popular photo app and social sharing site Instagram has been aquired by none other than Facebook for a sum somewhere around $1 billion in cash and shares. CEO Kevin Systrom confirms that the service is not going anywhere and will continue to run as-is for now.

Instagram to be acquired by Facebook for $1B cash and shares, service to remain as-is for now | TweakTown.com

Zuckerberg confirms the acquisition and says that the Facebook team will be "able to work even more closely with the Instagram team to also offer the best experiences for sharing beautiful mobile photos with people based on your interests." This purchase comes with some incredible statistics.

This deal took place roughly 551 days after Instagram's launch meaning that they made $1B in value in less than 2 years. That's simply incredible. But there's more. This incredible company only has 13 employees! Also, with a valuation of $1 billion, that means each Instagram user is worth approximately $33 a piece.

Zuckerberg posted about this on his Facebook Wall:

This is an important milestone for Facebook because it's the first time we've ever acquired a product and company with so many users. We don't plan on doing many more of these, if any at all. But providing the best photo sharing experience is one reason why so many people love Facebook and we knew it would be worth bringing these two companies together.

We're looking forward to working with the Instagram team and to all of the great new experiences we're going to be able to build together.

Last updated: Nov 30, -0001 at 12:00 am CST

Trace Hagan

ABOUT THE AUTHOR - Trace Hagan

Trace is a starving college student studying Computer Science. He has a love of the English language and an addiction for new technology and speculation. When he's not writing, studying, or going to class, he can be found on the soccer pitch, both playing and coaching, or on the mountain snowboarding.

NEWS SOURCE:thenextweb.com

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