Facebook is combining their user data with Instagram and is loosening the restrictions on e-mails between members of the social network. Facebook is also planning to scrap a 4-year old process to allow users to vote for changes on policies and terms of services.
Instagram was known for being a mobile-only photo social network. Instagram grew at such a rapid pace that Mark Zuckerberg decided to acquire Instagram for $1 billion in cash and stock. The final price for the company ended up being around $715 million since Facebook’s stock price dropped substantially. Web profiles for Instagram will be rolled out over the next few days. Instagram users will have a large cover image and the profiles will contain a collage of their photos. Instagram privacy options are similar to Twitter in the sense that you can be fully public or private. You can also force people to “request” the ability to follow you.
In the next few months, Twitter will be attempting to stop people from opening their Instagram app by adding photo filters to the Twitter mobile application. Facebook actually outbid Twitter to acquire Instagram back in April.
Facebook recently released their 10-Q with the SEC where they have revealed the final purchase price of Instagram. It turns out Instagram will be in their accounting books at $521 million. This is based on $300 million in cash that Facebook promised and 12 million vested shares of Class B common stock. The Class B common stock was given to “non-employee stockholders.”
Instagram is now beating Twitter in daily active users (DAUs) on mobile devices. This started in August for the first time according to comScore. Instagram had around 7.3 million daily mobile users for the month while Twitter had around 6.9 million. comScore is not really known for having 100% accuracy, but this can definitely serve as an indication that Instagram is growing at a rapid pace.
Facebook has officially closed on the acquisition of Instagram. Instagram has just hit 5 billion shared photos. Since Facebook’s stock price dropped dramatically since the IPO and Instagram took 23 million shares at a price of $30 per share, the deal is now worth significantly less than it was in April. Now that the deal is closed, Instagram is ready to get back to business.
Instagram CEO Kevin Systrom was at a hearing in San Francisco where California regulators were deciding on whether Facebook’s acquisition of Instagram could be allowed. Between the time Instagram started and the time they were acquired, the company ran up $2.7 million in losses.