Facebook Stuns with Billion Dollar Acquisition of Instagram

On Monday, social networking giant Facebook, which goes public next month, announced an acquisition that caught many by surprise. Facebook is proceeding with plans to purchase Instagram, the creative app wizards behind the hugely popular photo sharing service. The acquisition comes with a $1 billion dollar price tag, which will be paid to Instagram in …   Read More

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On Monday, social networking giant Facebook, which goes public next month, announced an acquisition that caught many by surprise.

Facebook is proceeding with plans to purchase Instagram, the creative app wizards behind the hugely popular photo sharing service.

The acquisition comes with a $1 billion dollar price tag, which will be paid to Instagram in cash and shares in Facebook.

As of this writing, the transaction will likely close this quarter.

“We think the fact that Instagram is connected to other services beyond Facebook is an important part of the experience,” Facebook CEO Mark Zuckerberg said. “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.”

Beginning in May, Facebook will be public traded on the NASDAQ in one of the biggest initial public offerings in the last decade.

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