Facebook the social networking giant to make photo-sharing company Instagram its biggest ever acquisition ahead of highly anticipated IPO.Even though it’s planning to launch its IPO later this year, that isn’t stopping Facebook from making a truly monster deal.
Facebook has announced that it has acquired Instagram, the company behind the popular photo editing and sharing app for iOS and Android devices, for a whopping $1 billion.
“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,” Mark Zuckerberg, Facebook co-founder, said on Monday.
The big ticket purchase was seen by some as a move by Facebook to strengthen its defenses against Google and blazingly hot newcomer Pinterest in the weeks ahead of what promises to be a history-making stock market debut.
The social networking giant said it plans to keep Instagram running independently.
“We think the fact that Instagram is connected to other services beyond Facebook is an important part of the experience,” Zuckerberg wrote.
The surprise announcement comes before the social network nears an initial public offering.Facebook in February filed for a stock offering and could raise as much as $10bn in the largest flotation ever by an internet company on Wall Street.
The leading social network said it has more than 845 million users, including 483 million who log in daily.Facebook’s value has been estimated at between $75bn and $100bn.
Source: News Reports