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Facebook Acquires Instagram for $1bn| Technical by Staff Reporter
Facebook will make a rare acquisition when it purchases Instagram for $1bn
Facebook has announced it will acquire photo-sharing application Instagram for $1-billion just months before the company is expected to go public.
The acquisition would, however, be a rare one, according to Facebook CEO Mark Zuckerberg.
“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,” said Zuckerberg in a blog post.
“We don’t plan on doing many more of these, if any at all,” he added.
Analysts suggest the reason for the acquisition of Instagram is the speed at which the start up has grown, meaning Facebook may have become nervous that the service would become a competitor, or that it would be snapped up by one of the company’s existing competitors like Google.
“Anytime you see a social platform that’s growing that quickly, that’s got to be cause to be nervous,” said Paul Buchheit, co founder of FriendFeed, one of Facebook’s early acquisitions.
“…If you're thinking this [Instagram] could be the next Twitter, it [acquiring it] could be a smart thing to do,” he added.