Photo-sharing site Instagram now finally belongs to Facebook Inc(NASDAQ:FB). The deal closure comes at a time when Instagram also hit a major milestone by more than 5 billion photos being shares via the application.
The social networking site closed the purchase valued at $1 billion on Thursday after running into some slight problems with U.K. and U.S. regulatory authorities.
Facebook's deal with Instagram involved a combination of cash and stock and the depreciation in the share price of Facebook has lowered the value of the deal to slight more than $700 million.
However, Instagram will still be Facebook's biggest acquisition in terms of value.
"Instagram will continue to serve its community, and we will help Instagram continue to grow by using Facebook's strong engineering team and infrastructure," said Mike Schroepfer, vice president of engineering at Facebook Inc., in a blog post.
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Facebook is also hiring Instagram's dozen or so employees and said it will work with them to help improve its own mobile applications. Instagram said its team will be moving from San Francisco to Facebook headquarters in Menlo Park.Instagram has a loyal following among Android and iPhone users who use the application to share photos. Instagram exists only as a mobile application, unlike Facebook which was created with computers in mind.
Shares in Facebook rose further on Thursday, after the measures announced by the company to stem the slide in its share price.
It closed up 38 cents at $18.96, still far below its IPO price of $38 a share in May.