The internet giant will hand over a combination of cash and shares for Instagram, which only has 10 staff
Facebook has paid $1bn to buy Instagram – just 18 months after the photo-sharing service launched.
The internet giant will hand over a combination of cash and shares for Instagram in its biggest-ever deal.
San Francisco-based Instagram only employs around 10 employees, who will transfer to working for Facebook.
The Instagram app, which is available for iPhone and Android phones, is particularly popular for its digital filters, which give photos a retro look.
Its 30 million registered users can share and comment on photos, which has turned it into a rival social network to Facebook.
The new owners have vowed to keep Instagram as a separate service rather than integrate it wholesale into Facebook.
Facebook founder and CEO Mark Zuckerberg said in a statement: “We think the fact that Instagram is connected to other services beyond Facebook is an important part of the experience.
“We plan on keeping features like the ability to post to other social networks, the ability to not share your Instagrams on Facebook if you want, and the ability to have followers and follow people separately from your friends on Facebook.”
Meanwhile Instagram CEO Kevin Systrom said he was “psyched” to be joining Facebook and added: “It’s important to be clear that Instagram is not going away.
“We’ll be working with Facebook to evolve Instagram and build the network.”
Instagram won Apple’s App of the Year at the end of 2011.