Social networking giant Facebook Inc acquired the popular photo sharing site Instagram Inc for a whopping sum of $1 billion.
Instagram that was voted as the iPhone app of the year in 2011 was purchased by Facebook for an agreement comprising cash and company shares.
“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’re looking forward to working with Instagram team and to all of the great new experiences we’re going to be able to build together,” said Mark Zukerberg, Facebook CEO.
The free photo sharing site Instagram that was launched in October 2010 had 30 million registered iOS user accounts at the time of the purchase and it had just debuted on Android around the time of the deal.
Instagram which was active for 18 months was worth $500 million as per the valuation done by Sequoia Capital, Thrive, Benchmark and Greylock and Facebook paid double the money to freeze the deal.