Facebook reaches an agreement to acquire popular Instagram for $1 billion


Mark Zuckerberg updated his Facebook timeline minutes ago with an interesting announcement. Looks like Facebook has agreed on terms to acquire popular photo-sharing app for mobile devices, Instagram.  The transaction value of this acquisition will cost Facebook approximately $1 billion, in combination of cash and shares within Facebook Inc.

Facebook says Instagram will still exist and run separately even after the deal goes through later this quarter.

This is a pretty important deal for Facebook because “it’s the first time we’ve ever acquired a product and company with so many users.