Facebook, Inc. announced Monday that it is purchasing the popular photo editing and sharing app Instagram for $1 billion in cash and stock.
The deal is Facebook’s largest acquisition to date, as the company has a history of purchasing smaller, cheaper start-ups in order to utilize their talent and manpower. The $1 billion deal presents a quick and easy goldmine for Instagram, which was started in 2010 by two Stanford graduates and presently has a total of about 12 employees.
Facebook Chief Executive Mark Zuckerberg announced the acquisition on his blog, maintaining that while he plans to integrate some aspects of the application into Facebook, Instagram will remain its own independent company.
“We will try to learn from Instagram’s experience to build similar features into our other products,” he said in a statement. “At the same time, we will try to help Instagram continue to grow by using Facebook’s strong engineering team and infrastructure.”
On Instagram’s website, the small start-up also reassured users that “Instagram is not going away.” Instead, they say, “We’ll be working with Facebook to evolve Instagram and build the network. We’ll continue to add new features to the product and find new ways to create a better mobile photo experience.”









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