Instagram Acquired By Facebook

Instagram, one of the most popular photo sharing apps for iPhone, has announced that they have agreed to be purchased by the most popular social networking site, Facebook.

This mega merger comes very shortly following Instagram's long awaited release of an Android app, and will cost Facebook $1 Billion.  While this is a hefty fee, it gives them a powerful software base to help build and streamline their photo sharing services.

Despite the transaction, Instagram CEO Kevin Systrom assured it's users on their blog that the app and platform will not be changing anytime soon, having this to say:

It’s important to be clear that Instagram is not going away. We’ll be working with Facebook to evolve Instagram and build the network. We’ll continue to add new features to the product and find new ways to create a better mobile photos experience.

The Instagram app will still be the same one you know and love. You’ll still have all the same people you follow and that follow you.You’ll still be able to share to other social networks. And you’ll still have all the other features that make the app so fun and unique.

We’re psyched to be joining Facebook and are excited to build a better Instagram for everyone.

This deal is sure to reverberate for a few days as the effects slowly begin to take shape.  Many are comparing this to the deal Google made to acquire YouTube and its video services.

Only time will tell if this deal is as successful for Facebook as YouTube was for Google, but for the folks and investors at Instagram this is a very nice payday for many years of hard work.