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Facebook buys Instagram for $1 billion
Facebook has announced it is buying the popular photo-sharing
smartphone app, Instagram for $1 billion (£629 million) in
cash and stock.
Instagram was only launched in October 2010 initially just as an
iPhone app before recently being released as an Android app.
The 13 employees of Instagram are now to share the $1 billion.
Kevin Systrom, Instagram’s CEO to net $400 million, along
with Co-founder Mike Krieger set to rake in $100 million. The
remaining employees are said to have a share of a 10% stake in the
company meaning a $100 million will be shared out amongst them.
The free app allows users to apply different filters to the
pictures they take, changing the colour balance to give the
pictures a different feel. The app has been hugely popular with
more than 30 million users uploading more than 5 million pictures
Facebook has recently taken the staff from another social
network in December, Gowalla, a location-based check-in service
which closed down shortly after.
Although Instagram fans don’t need to worry about the app
being shut down as Mark Zuckerberg said “we're
committed to building and growing Instagram independently. Millions
of people around the world love the Instagram app and the brand
associated with it, and our goal is to help spread this app and
brand to even more people.”
Facebook plans to issue $5 billion worth of stock on the New
York based Nasdaq exchange later this year, which could value the
firm at an estimated $100 billion.
By Luke Stanley
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