Facebook Buys Instagram

Mountain View-based Facebook said today that it has agreed to acquire Instagram, in a deal worth $1 billion in cash and stock. Facebok's Mark Suckerberg said that Instagram's team will be joining the social networking site, but will continue to build and grow Instagram independently as a separate service, including links to other social networks. Instagram was venture backed by Andreessen Horowitz, Baseline Ventures, Benchmark Capital, Jack Dorsey, Chris Sacca, and others, having raised $7M in February of 2011, and apparently just closing a $40M round in the last few days.