Facebook today released an updated amendment to its S-1 document for its upcoming IPO filing and within it we learn the social network now has over 500 million monthly active users, either via their official apps or mobile sites. There are currently 901 million monthly active users in total.
Also within the S1, we discover Facebook acquired Instagram for $300 million in cash plus 23 million shares, as part of their $1 billion dollar deal. It was reported by the WSJ Instagram co-founder Kevin Systrom and Facebook founder Mark Zuckerberg hammered out the deal at the latter’s $7 million dollar home in Palo Alto. Systrom originally wanted $2 billion for Instagram, but they both met at the $1 billion price point, over three days of negotiation. Facebook also noted they don’t have a major revenue stream for their mobile users.
Even with 500 million mobile users, many feel the Facebook iPhone app is still in need of a major overhaul to squash bugs and to improve the user interface.