Facebook‘s acquisition of Instagram is now complete, both companies announced in separate blog posts Thursday morning. The deal was approved by the California Department of Corporations in San Francisco and the Federal Trade Commission late last month.
Facebook’s Mike Schroepfer and Instagram’s Kevin Systrom iterated that Instagram would continue to develop and evolve its own product post-acquistion.
“As we said from the beginning, we are committed to building and growing Instagram independently,” Schroepfer, vp of engineering at Facebook wrote. “Instagram will continue to serve its community, and we will help Instagram continue to grow by using Facebook’s strong engineering team and infrastructure. We also can’t wait to work with the talented Instagram team to improve the mobile experience.”
“The Instagram app will still be the same one you know and love,” Instagram founder Systrom added.
Facebook agreed in April to exchange $300 million in cash and 23 million shares of common stock for Instagram. The deal was worth $1 billion at the time. Since then however, Facebook’s stock has dropped from around $31 per share to $19 per share, consequently reducing the value of the deal to $730 million. Had Facebook or Instagram insisted on a floating share exchange ratio, as the vast majority of acquisition deals do, Instagram might have been able to fetch a higher price.
In a separate post, Instagram announced that more than 5 billion photos have been shared through its mobile apps.