For years, we've focused on building the best experience for sharing photos with your friends and family. Now, we'll be able to work even more closely with the Instagram team to also offer the best experiences for sharing beautiful mobile photos with people based on your interests. We believe these are different experiences that complement each other. But in order to do this well, we need to be mindful about keeping and building on Instagram's strengths and features rather than just trying to integrate everything into Facebook.
Can a company that has existed for 500 days, has only 13 members of staff and produces no revenue be worth $1 billion?
Facebook's founder describes it as "an important milestone" as he offers a huge price for a company with around a dozen employees.