Facebook finalises Instagram deal - but the prices drops from $1bn to $300m (although it does throw in 23 million shares)
- Founder announces deal on Facebook - and immediately gets a 'like' from Mark Zuckerberg
- Photo service has over 50 million users
Facebook has finalised the purchase of Instagram, according to the photo-sharing website's founder.
Kevin Systrom, Instagram's founders - the sale of the firm to Facebook has now been agreed for $300m and 23 million shares
The social networking site bid $1bn (£628m) for Instagram in April, and was given the green light for the deal from US regulators at the end of August.
But, after the sharp fall in Facebook shares since the firm went public in May, the cash plus share offer ended up being worth nearer $700m.
Facebook shares launched at $38 each but closed on Thursday at $19.
Facebook offered $300m in cash and 23 million of its shares.
'Very excited to announce that we're now officially joining the Facebook family," Instagram founder Kevin Systrom wrote in a Facebook post.
'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.
The site has become a huge hit with celebrities: Here the The Saturdays Una Healy and Frankie Sandford use it before the MTV Video Music Awards in Los Angeles
'Here's to the next two as well!'
Since its launch in 2010, Instagram has won more than 50 million users, and a recent study said nearly half of the world's top brands use it as part of their marketing strategy.
Facebook has not commented on the sale, other than Mark Zuckerberg 'liking' Kevin systrom's post on the social networking site.
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