Facebook to Acquire Instagram for $1 Billion

Facebook just announced that it will acquire photo-sharing site Instagram for $1 billion in cash and Facebook shares. In a statement on his Facebook Timeline, Mark Zuckerberg says that his company has always focused on the ability to share pictures with those closest to you.

“Now, we’ll be able to work even more closely with the Instagram team to also offer the best experiences for sharing beautiful mobile photos with people based on your interests,” he writes. Zuckerberg adds that they will hang on to Instagram’s ability to share with social networks besides than Facebook as well as other features “rather than just trying to integrate everything into Facebook.”

Finally, according to Zuckerberg, this is the first huge acquisition the company has made and there won’t be many like it, if any at all. The deal will close later in the quarter.

Instagram had 30 million users before it added an Android version. Once that version was made available last Tuesday, The New York Times reported that 2,000 people were signing up per minute. Instagram users upload five million photos per day. Instagram is also set to receive another round of funding, $50 million on a $500 million valuation from Sequoia Capital.