Facebook makes one-billion-dollar-deal for Instagram photo sharing network on BrowseBiography

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Facebook makes one-billion-dollar-deal for Instagram photo sharing network

An Instagram application tuned to Apple's iPhones, iPads, and iPod touch devices has been downloaded more than 30 million times since the first version was released in late 2010 by the San Francisco startup.

Facebook announced is paying a $1bn in cash for the Instagram photo sharing network, one of the most widly popular smartphone photo sharing app.The big ticket purchase was seen by some as a move by Facebook to strengthen defenses against Google and blazingly hot newcomer Pinterest in the weeks ahead of what promises to be a history-making stock market debut. Facebook co-founder Mark Zuckerberg made the announcement on his profile: "For years, we've focused on building the best experience for sharing photos with your friends and family. 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."


Zuckerberg called the acquisition "an important milestone for Facebook because it's the first time we've ever acquired a product and company with so many users" but promised it was a rare acquisition.


An Instagram application tuned to Apple's iPhones, iPads, and iPod touch devices has been downloaded more than 30 million times since the first version was released in late 2010 by the San Francisco startup.


A version of the application tailored for smartphones powered by Google-backed Android software racked up more than a million users in the 24 hours after its release last week. "Instagram has built a sizable mobile photo sharing community," said NPD analyst Linda Barrabee. Clearly the value-proposition of Instagram's offering is a solid fit for Facebook."


The free mini-program lets people give classic looks to square photos using "filters" and then share them at Twitter, Facebook or other social networks. Apple crowned Instagram its app-of-the-year for 2011. Meanwhile, Instagram's FAQ says it had previously raised $7.5m in funding from three venture capital firms and "a small group of angel investors".


This deal marks the second time in the past four months that Facebook has taken on staff from another social network.



Facebook makes one-billion-dollar-deal for Instagram photo sharing network

 
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