In April 2012 Facebook acquired Instagram for approximately $1 billion in cash and stock, a strategic move that accelerated Facebook’s mobile and visual‑first strategy.
The deal
Facebook announced the agreement to acquire Instagram on April 9, 2012, for roughly $1 billion in a combination of cash and Facebook shares, a transaction that closed later that quarter after customary conditions were met.
Instagram at the time
At the moment of the acquisition Instagram was a small but rapidly growing startup with around 13 full‑time employees and roughly 30 million registered users, making the purchase notable for its scale relative to the company’s size.
Strategy and rationale
Facebook pursued Instagram to strengthen its position in mobile photo sharing, prevent a competitive threat and integrate a visual‑centric product that complemented Facebook’s broader social graph and advertising ambitions.
Integration and impact
Instagram continued to operate as a standalone brand while benefiting from Facebook’s resources, infrastructure and advertising ecosystem. The acquisition helped Instagram scale globally and evolve into a central platform for creators, brands and visual storytelling.
Legacy
The Facebook‑Instagram deal is widely regarded as a pivotal tech acquisition that reshaped social media, accelerated mobile‑first product strategies across the industry and demonstrated how strategic buyouts can secure long‑term growth and talent for major platforms.