Facebook buys Instagram for $1bn

Facebook has acquired photo-sharing website Instagram for $1 billion.

Instagram, a profitless website that was launched two years ago, has been downloaded by more than 30 million people. The Android version of the app, which was released this month, was downloaded a million times in its first 12 hours.

The app allows people to share photos taken with their mobiles with friends on the Instagram site and Facebook, Twitter or via text. Photographers can use a variety of filters to alter the look of their images, such as a vintage look. Users can then vote on pictures and add comments.

Facebook founder Mark Zuckerberg said: “This is an important milestone for Facebook, because it’s the first time we’ve ever acquired a product and company with so many users. We don’t plan on doing many more of these, if any at all. But providing the best photo sharing experience is one reason why so many people love Facebook and we knew it would be worth bringing these two companies together.”

The company was founded in October 2010 by graduates Kevin Systrom and Mike Krieger. It is the highest price paid for a profitless startup since Google bought YouTube for $1.65 billion in 2006.