Facebook has just announced that it has reached an agreement to acquire Instagram, a fun, popular photo-sharing app for mobile devices.
Announced in Facebook’s Newsroom, the total consideration for San Francisco-based Instagram is approximately US$ 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.
“I’m excited to share the news that we’ve agreed to acquire Instagram and that their talented team will be joining Facebook,” Mark Zuckerberg, founder and CEO of Facebook, posted about the transaction on his timeline.
According to Zuckerberg, these are different experiences that complement each other. His company needs to be mindful about keeping and building on Instagram’s strengths and features rather than just trying to integrate everything into Facebook.
“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,” Zuckerberg explains.