Facebook seals Instagram takeover

Instagram has more than 50 million users

Facebook has finalised the purchase of Instagram, according to the photo-sharing website's founder.

The social networking site bid $1bn (£628m) for Instagram in April, and was given the green light for the deal from US regulators at the end of August.

But, after the sharp fall in Facebook shares since the firm went public in May, the cash plus share offer ended up being worth nearer $700m.

Facebook shares launched at $38 each but closed on Thursday at $19.

Facebook offered $300m in cash and 23 million of its shares.

"Very excited to announce that we're now officially joining the Facebook family," Instagram founder Kevin Systrom wrote in a Facebook post Thursday.

"I'm psyched for the next chapter of this long journey."

Since its launch in 2010, Instagram has won more than 50 million users, and a recent study said nearly half of the world's top brands use it as part of their marketing strategy.