Facebook Acquires Instagram for $1 Billion

April 10th, 2012 at 2:54 pm

Facebook has announced it is acquiring Instagram mobile photo-sharing app for $1 billion in a bid to broad the social networking company’s business while absorbing a potential rival. This is Facebook’s biggest acquisition to date.

Facebook’s founder and CEO Mark Zuckerberg said that unlike its other purchases, Instagram will continue to operate as an independent company. Instagram’s users will not have to become Facebook members to utilize the app.

The hugely-popular app enables smartphone users to apply various retro filters to their photos, then quickly email or upload them to social media sites. Instagram has been downloaded over 30 million times in less than two years, which may have sent the competition–including Facebook–shaking in their boots.

Instagram’s co-founder Kevin Systrom, who will receive a $400-million paycheck when the acquisition closes by end of June, assures its users not to worry about the buyout.

“We’ll be working with Facebook to evolve Instagram and build the network,” he wrote in a blog post. “We’ll continue to add new features to the product and find new ways to create a better mobile photos experience.”

Source: Los Angeles Times


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