A Cool Billion

Facebook issued a press release stating that it has agreed to acquire Instagram , a photo-sharing app for mobile devices, for total consideration of “approximately $1 billion”, including cash and shares of Facebook. The transaction is expected to close later this quarter.

Mark Zuckerberg, founder and CEO of Facebook, announced the agreement on his Facebook Timeline:

“I’m excited to share the news that we’ve agreed to acquire Instagram and that their talented team will be joining Facebook.”

Facebook intends to keep and build on Instagram’s strengths and features instead of a straight integration into Facebook.

Facebook’s intent is to let Instagram grow independently of Facebook by using Facebook’s strong engineering team and infrastructure. They plan to keep the ability to post to other social networks, allow users to not share Instagram photos on Facebook and to follow people or have followers independent from your Facebook friends.

More from Mark Zuckerberg’s Timeline post:

“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. 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.”

Pretty nice deal for Instagram.

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About the Author

Judy Novotny

Judy is a computer veteran with 30 years of experience. She has owned everything from a TRS-80, Apple IIe and various Windows-based PCs. She is currently living in her Apple ecosystem at home consisting of an iPhone, iPad, iMac, MacBook, Apple TV, iPod nano and two Time Capsules. She is a fan of all things mobile since she got her first Palm Pilot in 1999. Check out her iPad app, Number Wizard, in the App Store. Follow her on Twitter @junovotech or at Junovo.com.