Social networking website Facebook will soon acquire the photo sharing company Instagram for USD 1 billion paid in cash and stock.
“I’m excited to share the news that we’ve agreed to acquire Instagram and that their talented team will be joining Facebook,” CEO Mark Zuckerberg said in an update on his profile page on Monday.
Zuckerberg said the Instagram team will continue to function independently, and that the idea behind the acquisition was to simply offer the best way for sharing mobile photographs with people based on one’s interests.
“…we need to be mindful about keeping and building on Instagram’s strengths and features rather than just trying to integrate everything into Facebook,” Zuckerberg said.
“Millions of people around the world love the Instagram app and the brand associated with it, and our goal is to help spread this app and brand to even more people,” he added.
After the integration, users will have the ability to post photos on other social networks. They will also be able to opt out of sharing their Instagrams on Facebook.
A user will also be able to have followers and follow people separately from her Facebook friends, Zuckerberg said.
The Instagram buyout is the largest ever acquisition by Facebook. The USD 1 billion payment to buy the photo sharing company values it higher than The New York Times, a Huffington Post report pointed out.
So far, Instagram employs a total of seven people, and has “yet to make any money”, the report adds.