Facebook Acquires Instagram For $1 Billion

logo - Instagram

logo - InstagramFollowing the launch of its Android app last week, Instagram makes headlines again with news that Facebook has agreed to buy the hugely popular photo-sharing app maker for $1 billion in cash and stock, in a blockbuster deal that’s got Silicon Valley buzzing.

Facebook’s chief executive and founder, Mark Zukerberg, made the announcement Monday (April 9) on his Facebook profile, in a post that has been liked over 73,000 times as of press time.

In it, he pledges to allow Instagram to remain independent.

“For years, we’ve focused on building the best experience for sharing photos with your friends and family. Now, we’ll be able to work even more closely with the Instagram team to also offer the best experiences for sharing beautiful mobile photos with people based on your interests,” Mark Zuckerberg wrote.

“We believe these are different experiences that complement each other. But in order to do this well, we need to be mindful about keeping and building on Instagram’s strengths and features rather than just trying to integrate everything into Facebook. That’s why we’re committed to building and growing Instagram independently. Millions of people around the world love the Instagram app and the brand associated with it, and our goal is to help spread this app and brand to even more people.”

The deal marks Facebook’s biggest acquisition to date. However, in his post, Zuck hinted that the acquisition might be the last of its size and scope. Previously, the social networking giant has targeted smaller companies for acquisitions.

“It’s the first time we’ve ever acquired a product and company with so many users,” Zuck wrote. “We don’t plan on doing many more of these, if any at all. But providing the best photo sharing experience is one reason why so many people love Facebook and we knew it would be worth bringing these two companies together.”

The deal is expected to be finalized later this quarter.

Apparently, according to TechCrunch.com, Instagram closed $50 million in funding at A $500 million valuation just before the sale. These new investors weren’t aware of the deal either, but will make out with 2x their investment in just a few days … now that’s fast money!

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