In what is being called the largest mobile app acquisition in history, Facebook’s $1 billion buyout of Instagram is landing the iPhone app’s founders in a boatload of cash. Instagram’s two co-founders, Kevin Systrom and Mike Krieger, will cash in $500 million combined as a result of getting in bed with the social network behemoth. Quite the pay day for an app that’s been in the App Store for barley two years.
CEO Systrom owns 40 percent of Instagram, according to a source close to the company, who provided Wired with figures from 2011. That will net Systrom $400 million to take home as a result of the deal. Co-founder Mike Krieger holds about a 10 percent stake, and will net around $100 million. Benchmark Capital, the venture capital firm which led Instagram’s Series A funding round in 2011, has about an 18 percent stake, netting roughly $180 million from the deal. Andreessen Horowitz and Baseline Ventures, two investment firms backing Instagram, each have about a 10 percent stake, netting just under $100 million apiece.
Instagram has 13 full-time employees who will each receive part of a $100 million pool. Employees with seniority will be awarded more cash than new hires.
With 30 million users and a hot new Android app, Instagram is the creme de le creme of social photography apps. Here’s to hoping it stays that way.Related