How much did Facebook pay to acquire Instagram in 2012?

Facebook agreed to pay approximately $1 billion to acquire Instagram in 2012.

Facebook announced the deal on April 9, 2012, describing the consideration as a combination of cash and Facebook shares. At the time, Instagram was a rapidly growing mobile photo-sharing service founded by Kevin Systrom and Mike Krieger. Facebook said Instagram would remain independently branded and operated rather than being immediately folded into the main Facebook product.

A common source of confusion is the difference between the headline deal value and the eventual accounting breakdown. When the transaction officially closed on September 6, 2012, reports described the consideration as about $300 million in cash plus 23 million Facebook shares. Because Facebook’s share price changed, the final value was sometimes reported below the original approximately $1 billion announcement figure.

Instagram had only a small team and no significant revenue at the time, making the price especially notable. The acquisition helped Facebook expand its position in mobile photography, while Instagram continued to develop as a distinct service.