Facebook, the leading social networking site in the world, has spent $1bn to buy a smartphone app called Instagram which allows users to edit and share photos online.
Experts have said this is a huge payout for a three-year-old company with 13 employees, no business plan and no profits.
Even so, with more than 25 million of its own users, the rapidly growing Instagram had become a serious competitor to Facebook in the social networking arena, and on its most important platform – smartphones.
Al Jazeera's Rob Reynolds reports.
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Source: Al Jazeera