Facebook to acquire Instagram
Apr 12, 2012 (Datamonitor Financial Deals Tracker via COMTEX) --
Facebook, Inc., a social networking company, has agreed to acquire Instagram, a developer of photo sharing application for mobile devices, for a total consideration of approximately $1,000 million in cash and stock. Both the companies are based in the US.
Instagram is backed by Benchmark Capital, Andreessen Horowitz, Sequoia Capital, Greylock Partners, Matt Cohler, Baseline Ventures and individual investors including Adam D'Angelo, Jack Dorsey, Chris Sacca, and Steve Anderson.
Pursuant to the transaction, Facebook will continue to develop Instagram as an independent application that remains compatible with other social networking services.
The transaction is expected to close at the end of second quarter.
Fenwick & West LLP is acting as legal advisor and Brunswick Group is acting as PR advisor to Facebook.
Deal Value (US$ Million) 1000
Deal Type Acquisition
Sub-Category Majority Acquisition
Deal Status Announced: 2012-04-09
Target (Company) Instagram
Acquirer (Company) Facebook, Inc.
The acquisition of Instagram will help Facebook strengthen its photo-sharing and mobile capabilities. It will also provide Instragram access to Facebook's engineering team and infrastructure.
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