Facebook To Acquire Instagram For $1 billion

In its biggest acquisition move, Facebook is all set to buy Instagram, a 2-year-old popular mobile photography application developer at $1 billion in cash and stock.

Facebook to buy Instagram

Instagram, new iPhone application, was founded by two Stanford graduates Kevin Systrom and Mike Krieger in October 2010. Instagram grew rapidly with more than 30 million registered users in less than 2 years. Based in San Francisco, Instagram has about a dozen employees  and it generates no revenue. Facebook will acquire Instagram’s entire team. The value of the company is at $500 million.

The Istagram application allows users to add filters and effects to photos taken on their iPhone and Android devices and to share those pictures with their friends. Acquiring Instagram application surely improves Facebook’s mobile offerings.

“This is an important milestone for Facebook because it’s the first time we’ve ever acquired a product and company with so many users,” Facebook Founder and CEO Mark Zuckerberg said.

World’s No. 1 social media website, Facebook with more than 845 million users, is expected to go public in May and expected to raise $5 billion.

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