Feeds

Facebook seals Instagram buyout for roughly $715m

Despite sub-$1bn price, photo-sharing founder is 'psyched' ... bitch

Boost IT visibility and business value

Instagram founder Kevin Systrom is totally "psyched" to see his company merge with Facebook, even after the deal ended up being much lower than the initial $1bn price tag initially offered by Mark Zuckerberg.

The value of the buyout has tumbled because when Systrom agreed to Facebook's acquisition proposal back in April this year, they cut a deal that Facebook would pay partly in shares and partly in cash – which would have worked out in Systrom's favour had the shares increased in value. But late last week, when it's understood the deal closed, Facebook shares hit a new all-time low of $18.02 a share on Nasdaq.

That meant the photo filter app's makers ended up receiving $300m in hard money and a further 23 million shares in the world's largest social network, which adds up to a deal set at roughly $715m.

The takeover took time to be sealed due to regulatory clearance being needed on both sides of the Atlantic before it could progress. In the meantime, Facebook shares continued their downwards spiral.

But no matter, according to Systrom, as what's a few hundreds of millions of dollars between Web2.0 friends?

On the deal, he had this to say via, natch, his Facebook profile page:

Very excited to announce that we're now officially joining the facebook family! Instagram has continued to grow and succeed beyond what we ever imagined, and we're so proud of all the team has accomplished. I'm psyched for the next chapter of this long journey. I want to personally thank everyone in the Instagram community for the last two years of inspiration. Here's to the next two as well!

And Zuckerberg smugly agreed, by flicking the "Like" button on Systrom's post. Bless. ®

Boost IT visibility and business value

More from The Register

next story
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
Sonos AXES support for Apple's iOS4 and 5
Want to use your iThing? You can't - it's too old
Philip K Dick 'Nazi alternate reality' story to be made into TV series
Amazon Studios, Ridley Scott firm to produce The Man in the High Castle
Too many IT conferences to cover? MICROSOFT to the RESCUE!
Yet more word of cuts emerges from Redmond
Joe Average isn't worth $10 a year to Mark Zuckerberg
The Social Network deflates the PC resurgence with mobile-only usage prediction
Chips are down at Broadcom: Thousands of workers laid off
Cellphone baseband device biz shuttered
Feel free to BONK on the TUBE, says Transport for London
Plus: Almost NOBODY uses pay-by-bonk on buses - Visa
Amazon says Hachette should lower ebook prices, pay authors more
Oh yeah ... and a 30% cut for Amazon to seal the deal
Twitch rich as Google flicks $1bn hitch switch, claims snitch
Gameplay streaming biz and search king refuse to deny fresh gobble rumors
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Backing up Big Data
Solving backup challenges and “protect everything from everywhere,” as we move into the era of big data management and the adoption of BYOD.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Why and how to choose the right cloud vendor
The benefits of cloud-based storage in your processes. Eliminate onsite, disk-based backup and archiving in favor of cloud-based data protection.