Which company bought Instagram for about $1 billion in 2012?
Answer
Facebook bought Instagram for about $1 billion in 2012. The acquisition was announced in April 2012, when Instagram was a rapidly growing mobile photo-sharing service with a small team.
Instagram was founded by Kevin Systrom and Mike Krieger and launched in October 2010. Its early appeal came from simple mobile photography, square images, and filters that gave ordinary smartphone pictures a distinctive look.
At the time of the deal, Instagram had roughly 30 million registered users and had not yet launched an Android application. Facebook said Instagram would remain an independent service rather than being immediately absorbed into Facebook’s main product.
The final transaction was primarily cash and Facebook shares. Its frequently cited $1 billion value reflects the announced deal terms and the value of Facebook stock at the time, rather than a cash payment of $1 billion.