Facebook today announced that its acquisition of Instagram is complete. The mobile photo sharing network will continue to operate under the Instagram brand, but its 16 employees will join the team in Menlo Park, Calif., and Facebook will support the app with infrastructure and engineers.
When Facebook first announced its plan to buy Instagram in April, the deal was worth $1 billion in cash and stock. A mandatory review from Federal Trade Commission delayed the closing of the deal, and with Facebook’s share price suffering since its initial public offering, that value has dropped. Instagram agreed to $300 million in cash and 22,999,412 shares of Facebook common stock, which the California Department of Corporations approved after a hearing last week. The final value of the sale is closer to $735 million.
Instagram shared a new milestone in its blog post about the acquisition: 5 billion photos shared through the service. The app also picked up more than 50 million new users in the four and a half months since Facebook announced its plans to acquire the mobile photo-sharing network.
In the blog post, the Instagram team wrote, “The Instagram app and its features will stay the same one you know and love, and we’ll keep working together to build a better Instagram for everyone.”
Facebook VP of Engineering Mike Schroepfer echoed the statement in a blog post, saying Facebook is “committed to building and growing Instagram independently.”
Schroepfer also noted that Facebook will look to the Instagram team to help the social network improve its mobile experience.