Facebook to spend $1 billion to acquire InstagramAlex Wagner - Deputy Managing Editor, News Desk
Facebook CEO Mark Zuckerberg announced today on his Facebook page that his company has acquired Instagram, a popular photo-sharing service for iOS and Android. The deal will see Facebook pay a total of $1 billion in both cash and shares for Instagram. In his announcement of the deal, Zuckerberg explains that Facebook has always worked to offer the best photo-sharing experience possible, and that buying Instagram will help it to provide users with "the best experiences for sharing beautiful mobile photos." He also said that Instagram will be kept independent. Instagram CEO Kevin Systrom added that Instagram isn't going anywhere and that users will still be able to share photos to social networks other than Facebook.
Instagram originally launched back in October 2010, and less than a week ago it made its debut on Android in the Google Play store. Photo-sharing is big for Facebook, and obviously is all that Instagram is, and it'll be interesting to see how the two grow now that they've been brought together. You can find Facebook's press release announcing the deal below. What do you all make of this news? How many of you currently use Instagram?
Facebook to Acquire Instagram
MENLO PARK, CALIF. — April 9, 2012 — Facebook announced today that it has reached an agreement to acquire Instagram, a fun, popular photo-sharing app for mobile devices.
The total consideration for San Francisco-based Instagram is approximately $1 billion in a combination of cash and shares of Facebook. The transaction, which is subject to customary closing conditions, is expected to close later this quarter.
Mark Zuckerberg, founder and CEO of Facebook, posted about the transaction on his Timeline:
I’m excited to share the news that we’ve agreed to acquire Instagram and that their talented team will be joining Facebook.
For years, we’ve focused on building the best experience for sharing photos with your friends and family. Now, we’ll 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.
We believe these are different experiences that complement each other. But in order to do this well, we need to be mindful about keeping and building on Instagram’s strengths and features rather than just trying to integrate everything into Facebook.
That’s why we’re committed to building and growing Instagram independently. Millions of people around the world love the Instagram app and the brand associated with it, and our goal is to help spread this app and brand to even more people.
We think the fact that Instagram is connected to other services beyond Facebook is an important part of the experience. We plan on keeping features like the ability to post to other social networks, the ability to not share your Instagrams on Facebook if you want, and the ability to have followers and follow people separately from your friends on Facebook.
These and many other features are important parts of the Instagram experience and we understand that. We will try to learn from Instagram’s experience to build similar features into our other products. At the same time, we will try to help Instagram continue to grow by using Facebook’s strong engineering team and infrastructure.
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.