Facebook acquires Instagram

Facebook PR

MENLO PARK, CALIF.—April 9, 2012—Facebook announced today that it has reached an agreement to acquire Instagram, a fun, popular photo-sharing app for mobile devices.

The total consideration for San Francisco-based Instagram is approximately $1 billion in a combination of cash and shares of Facebook. The transaction, which is subject to customary closing conditions, is expected to close later this quarter.

I suspect Facebook felt threatened by Instagram’s growing self portrait numbers and acted in a panic. How else would you justify a 1 billion dollar price tag for a product that makes no money?

I suspect they’ll patent the girl+camera+mirror genre soon.