Facebook announced Monday it will acquire the popular mobile photo-sharing firm Instagram, a push by the social networking giant to draw more consumers who rely on smartphones and tablets for their digital needs.
The deal, Facebook’s largest to date, is worth around $1 billion in cash and shares, Facebook said.
“[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,” Facebook chief executive Mark Zuckerberg wrote on his Facebook page.
The shift toward mobile has proven problematic for Facebook, which admitted in February that its decision not to put display ads on its mobile applications has made it difficult to generate revenue on that platform. Facebook has since put some ads in the news feeds of its mobile users.
Instagram, meanwhile, estimates that its users upload around 5 million photos through mobile devices to its service each day.