[QODLink]
Business
Facebook snaps up Instagram for $1bn
Social networking giant to make photo-sharing company its biggest ever acquisition ahead of highly anticipated IPO.
Last Modified: 10 Apr 2012 07:48
Facebook said it plans to keep Instagram running independently [AFP]

Facebook, the world's largest social networking site, has announced it will buy smartphone photo-sharing company, Instagram, for $1bn, making it its largest acquisition ever.

"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," Mark Zuckerberg, Facebook co-founder, said on Monday.

"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."

California-based Facebook is paying cash and stock for San Francisco-based Instagram and hiring its entire team as part of the deal, which is expected to close by the end of June.

Instagram’s free mini-programme, which lets people give classic looks to square photos using "filters" and then share them at Twitter, Facebook or other social networks, has gained about 30 million users since it first launched in January last year.

'Remain independent'

"We're psyched to be joining Facebook," Kevin Systrom, Instagram's co-founder, said in a blog post Monday at the Instagram website.

"We'll be working with Facebook to evolve Instagram and build the network."

The social networking giant said it plans to keep Instagram running independently.

“We think the fact that Instagram is connected to other services beyond Facebook is an important part of the experience,'' Zuckerberg wrote.

The surprise announcement comes before the social network nears an initial public offering.

Facebook in February filed for a stock offering and could raise as much as $10bn in the largest flotation ever by an internet company on Wall Street.

The leading social network said it has more than 845 million users, including 483 million who log in daily.

Facebook's value has been estimated at between $75bn and $100bn.

Source:
Agencies
Topics in this article
People
City
Featured on Al Jazeera
The author argues that in the new economy, it's people, not skills or majors, that have lost value.
Colleagues of detained Al Jazeera journalists press demands for their release, 100 days after their arrest in Egypt.
Mehdi Hasan discusses online freedoms and the potential of the web with Wikipedia founder Jimmy Wales.
A tight race seems likely as 814 million voters elect leaders in world's largest democracy next week.
Featured
Since independence, Zimbabwe has faced food shortages, hyperinflation - and several political crises.
After a sit-in protest at Poland's parliament, lawmakers are set to raise government aid to carers of disabled youth.
A vocal minority in Ukraine's east wants to join Russia, and Kiev has so far been unable to put down the separatists.
Iran's government has shifted its take on 'brain drain' but is the change enough to reverse the flow?
Deadly attacks on anti-mining activists in the Philippines part of a global trend, according to new report.
join our mailing list