In a blog entry by Kevin Systrom, CEO of Instagram, has announced that Instagram will be acquired by Facebook.
The application that was recently released to the Android Market and has been on the App Store since October 2010 allows users to add digital filters on images and share them. A great part of the growth of the company is thanks to social networking sites such as Facebook and Twitter. Kevin assured that the application would not change dramatically and stay unique.
Mark Zuckerberg, founder of Facebook anounced his intentions on Facebook. He said:"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."
This take over is estimated to be a $1bn purchase, the highest for a profitless startup since Google bought Youtube at $1.65bn in 2006.
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