(09-06) 12:47 PDT San Francisco -- It took five months, but Facebook's pricey acquisition of Instagram is finally a done deal, just as the popular mobile photo app maker hit a major milestone.
More than 5 billion photos have been shared by people using Instagram, which now becomes part of a social network that has nearly 1 billion members.
The cash-plus-stock deal would have added another "billion" to that sentence if it had closed in April, but because Facebook's stock price tanked after the company went public, Instagram now joins the social network for a mere $741 million instead of $1 billion.
In a blog post announcing the deal had officially closed Thursday, Instagram said its team was moving from San Francisco to Facebook headquarters in Menlo Park.
"We're humbled that so many people around the world use Instagram to share their lives with friends through photos," the post said. "From weddings to epic pilgrimages through the Spanish countryside, we're constantly amazed by the stories that are shared on Instagram, and we thank you for being a part of this growing community."
The company said the move to Facebook "means we can now work together to evolve and build a better Instagram for everyone. While our team is making the short move to the Facebook offices, Instagram isn't going anywhere. The Instagram app and its features will stay the same one you know and love, and we'll keep working together to build a better Instagram for everyone."
More than 300 million images are uploaded to Facebook each day, but there's not a clear picture of how Facebook will use Instagram and its team to improve existing photo sharing features.
But the Instagram deal, which had to clear some regulatory hurdles, does give Facebook a popular mobile application at a time when users are flocking to smart phones and tablets.
Mike Schroepfer, Facebook's vice president of engineering, said Instagram will remain independent.
"As we said from the beginning, we are committed to building and growing Instagram independently," he said in a Facebook post. "Instagram will continue to serve its community, and we will help Instagram continue to grow by using Facebook's strong engineering team and infrastructure. We also can't wait to work with the talented Instagram team to improve the mobile experience."
One huge question is whether Facebook can turn Instagram, which wasn't generating a profit, into a mobile money maker. According to new estimates by online research firm eMarketer, Twitter is going to make more money on mobile advertising this year than Facebook.
Twitter, which is finding success with advertiser-sponsored products like Promoted Tweets, will earn $129.7 million in mobile advertising in the U.S. this year, eMarketer said.
Facebook, which only recently began rolling out mobile ads, should generate about $72.7 million. Facebook is still dependent on its online display ads, which appear on the web but not on mobile devices, for 60 percent of its ad revenue, eMarketer said.
That should flip-flop next year, with Facebook generating $387 million in mobile advertising and Twitter at $272.6 million
Both still lag far behind Google, the leader in mobile ad revenue space, which should generate about $1.4 billion this year and $2.4 billon in 2013.
Oakland's Pandora Media "has emerged as one of the strongest U.S. mobile display ad sellers" and should come in second to Google with $226.4 million in revenues this year and $349.4 million next year, eMarketer said.
LinkedIn mobility
LinkedIn is adding more features to its mobile applications, but the more interesting news is how quickly members of the professional social network have adapted to using mobile devices.
More than 23 percent of LinkedIn's users visit the service through a mobile app, compared to just 10 percent one year ago. And more than 15 percent of new signups come through a mobile device.
Sure, Facebook already has half of its users on mobile, but it's only been a little more than a year since LinkedIn revamped its apps to emphasize mobile, and the Mountain View company only introduced an iPad app in April.
The updated iPad app, released Wednesday, will also have six additional languages, an important step since 60 percent of LinkedIn's membership is now based outside of the U.S.
The new features are designed to increase daily use of LinkedIn, including instant notifications for whenever someone comments on a story or sends a message.
The mobile apps will now also recommend potential new jobs. That function has been available on LinkedIn's website, but there's nothing worse than having a big list of jobs openings displayed on your desktop screen when the boss walks by. With a smart phone or tablet, you can hide in a storage closet while looking for a better job.
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