Tim Weber
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Instagram deal: Who wins?

Facebook has announced it is to buy Instagram, the popular photo-sharing smartphone app.

Facebook is paying $1bn (£629m) in cash and stock for the takeover.

Instagram is a free application, but it has proved hugely popular and is now very profitable for its founders as well.

Tim Weber is the Business Editor for the BBC News Website and he explained why Facebook chose to spend such a huge amount of money on one app.

  • 10 Apr 2012
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