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Facebook to buy Instagram for $1 billion

Msnbc.com's Pat Rizzo reports:

"I'm excited to share the news that we've agreed to acquire Instagram and that their talented team will be joining Facebook," Facebook's head honcho Mark Zuckerberg said on April 9, in a posting on Facebook.

Facebook, which is busy planning an initial public offering that could value the social networking website at more thn $100 billion, will pay a combination of cash and stock for Instagram, Reuters reported. Based in San Francisco, Instagram has about a dozen employees.

Justin Sullivan / Getty Images

In this photo illustration, the photo-sharing app Instagram fan page is seen on the Facebook website on the Apple Safari web browser. Facebook Inc. is acquiring photo-sharing app Instagram for approximately $1 billion.

Justin Sullivan / Getty Images

In this image created using the iPhone Instagram application on April 9, various Facebook logos are seen on a computer screen.

 

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