About 23 million shares of common stock and $300 million in cash, that’s what social network Facebook plunked down to acquire the mobile photo-sharing app Instagram, reads an amendment to their IPO filing submitted to the Securities and Exchange Commission.
Facebook is expected to complete the deal later this year.
“Following the closing of this acquisition, we plan to maintain Instagram’s products as independent mobile applications to enhance our photos product offerings and to enable users to increase their levels of mobile engagement and photo sharing,” Facebook said.
Earlier this month, Facebook announced plans to acquire Instagram – a photo service where users can apply special filters to images and share them with friends – for $1 billion. It was the first major deal for the social network since filing its IPO in February.
“We believe these are different experiences that complement each other,” said Facebook CEO Mark Zuckerberg when the deal was revealed, as USAtoday stated.
Zuckerberg added “But in order to do this well, we need to be mindful about keeping and building on Instagram’s strengths and features rather than just trying to integrate everything into Facebook.”
The SEC amendment also reveals a few more tidbits on Facebook’s business. The social network says revenue jumped 45%, while the number of users topped 901 million.