Facebook Acquires Instagramfor $1 Billion

As number of smartphone users is increasing so are the apps being developed and launched out every day to satisfy the demand of people to have something unique, different and fun. Instagram was voted as app of the year 2011 on Apple. And with the growing popularity and users who share pictures thru this app, Facebook decided to purchase it for a whooping price of $ 1 billion.

For 18 months, Instagram have been on the limelight of photo sharing app gathering 30 million Apple users alone, not taking into consideration that the app have just debuted on the Android platform and got millions of downloads immediately. This tells us the story of how famous has it become now.

Are you not as user of Instagram yet? Wondering what this Insta-gram is all about? Instagram is a fast, beautiful and fun way to share your life with friends through a series of photos. It is a free photo sharing program launched in October 2010 that allows users to take a photo, apply a digital filter to it, and then share it on a variety of social networking services, including Instagram's own. It is also estimated that now there are over 160 million users of Instagram.

According to recent company valuation done by Sequoia Capital, Thrive, Benchmark and Greylock, Instagram is reported worth $500 million. And Facebook got a seemingly preventive offer of twice the worth of the company (which totally a crazy number) against Google, Twitter and Microsoft eying to take over the Instagram. “Facebook has the money (almost $4 billion in cash on hand as of December 2011), and certainly isn’t desperate for more users, most if not all of whom are already on Facebook,” as cited in a Forbes’ report.