Facebook and Microsoft have agreed to pay a combined $1.1 billion to buy Instagram.
The deal will be structured as a buyout and is expected to close by the end of 2017.
The company will pay Instagram about $4 billion in cash.
The sale is expected in the fourth quarter of 2017, according to people familiar with the matter.
The companies said the acquisition will create a new and highly efficient ad platform for the world’s most popular social media network.
Facebook will pay for the acquisition with $250 million in cash, while Microsoft will pay $50 million.
The buyout price reflects the closing of a series of negotiations that began earlier this year.
Facebook and Instagram are the latest companies to try to monetize their businesses on the social media platform, which has seen revenue growth over the past three years despite the fact that it’s now dominated by a handful of major brands.
It was recently acquired by Google for $1, the largest acquisition of a social media company ever.
Facebook has said it will continue to invest in social media and make it easier for advertisers to reach audiences on its platform.