Facebook has finally closed its deal to acquire Instagram, the companies announced today.
When Facebook announced in April that it would acquire Instagram, the price was $1 billion, including $300 million in cash and the rest in stock. Since then, Facebook went public, and its stock price has plunged. With Facebook's stock trading at $18.92 Thursday, the deal price is about $736 million.
"So many of us at Facebook love using Instagram to share moments with our friends," said Facebook vice president of engineering Mike Schroepfer in a blog post. "And for so many people, sharing photos with friends is an important part of the Facebook experience. That's why we're so excited to bring Instagram to Facebook and see what we can create together."
Schroepfer reiterated Facebook's commitment to maintain Instagram as an free-standing service. For Facebook, closing the deal will give Facebook the ability to now integrate Instagram more tightly. Despite Schroepfer's insistence that Instagram will be independent, it will be interesting to watch what hooks Facebook adds for Instagram. Facebook can also now draw on Instagram's expertise in mobile, a key area that Mark Zuckerberg is focusing on as users increasingly shift to mobile devices.
Instagram has now shared more than 5 billion photos.