Instagram was the social media platform acquired by Facebook in 2012 for approximately $1 billion. Facebook announced the deal on April 9, 2012, offering a mix of cash and stock for the rapidly growing photo-sharing service.
Instagram had been founded in 2010 by Kevin Systrom and Mike Krieger as a mobile-first photo app. Its simple square photos and built-in filters helped it attract millions of users before it had a large business or advertising operation. At the time of the acquisition, Instagram had only about 13 employees, making the price especially striking.
The transaction did not immediately turn Instagram into a normal Facebook product. Mark Zuckerberg said Facebook intended to keep the service independently managed, and Instagram continued developing its own identity and app experience. The deal officially closed later in 2012 after regulatory reviews. Facebook acquired WhatsApp in 2014, for a much larger price, which is a common source of confusion.