Feeds

Facebook seals Instagram buyout for roughly $715m

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

Bridging the IT gap between rising business demands and ageing tools

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. ®

Application security programs and practises

More from The Register

next story
Stick a 4K in them: Super high-res TVs are DONE
4,000 pixels is niche now... Don't say we didn't warn you
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
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
Amazon Reveals One Weird Trick: A Loss On Almost $20bn In Sales
Investors really hate it: Share price plunge as growth SLOWS in key AWS division
Bose says today is F*** With Dre Day: Beats sued in patent battle
Music gear giant seeks some of that sweet, sweet Apple pie
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
Too many IT conferences to cover? MICROSOFT to the RESCUE!
Yet more word of cuts emerges from Redmond
prev story

Whitepapers

Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
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.
Top 8 considerations to enable and simplify mobility
In this whitepaper learn how to successfully add mobile capabilities simply and cost effectively.
Seven Steps to Software Security
Seven practical steps you can begin to take today to secure your applications and prevent the damages a successful cyber-attack can cause.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.