Instagram a widely popular application for the iPhone and more recently Android which lets its users apply filters to images to make them look vintage or even as if they were taken on a polaroid then share them online has been acquired by Facebook this Monday ( 9th of April 2012 ) for a staggering $1 billion.

CEO and co-founder of Instagram – Kevin Systrom is estimated to be making $400 million with venture capital companies getting the majority of the rest.

Mark Zuckerberg said Monday “This is an important milestone for Facebook, because it’s the first time we’ve ever acquired a product with so many users” – however Facebook whos stock is set to start trading in May will be running Instagram as a separate company.

Moor Insights & Strategy said “Facebook will never make that $1 billion back, but it’s still smart” stating Facebooks acquisition was “defensive” as “Instagram was the only thing challenging Facebook’s dominance in photo sharing”

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