Facebook has spent nearly $12bn acquiring Instagram and its business and marketing empire in a deal that is being heralded as one of history’s biggest tech buys.
The deal is expected to be completed by the end of the year.
The purchase of Instagram by Facebook comes as a major force in the growth of mobile apps, and the social network is now one of Google’s top four search engines globally.
Its acquisition of Snap, which owns Snapchat, could also help Facebook expand its business in the mobile world.
The Facebook-owned company is building an advertising and marketing platform for mobile devices.
The deal comes as Snapchat, a social media app for young people, is gaining traction.
Snapchat’s revenue is projected to double from 2016 to 2021.
The acquisition of Snapchat could boost Instagram’s revenue by about 10%, according to analysts at IDC.
The valuation of Instagram will also increase in line with the growth.
In addition to Instagram, the acquisition of Facebook will also create a separate digital advertising unit that is expected grow to about $4bn a year by 2021.
It is expected that this unit will help Instagram grow by at least 50% to more than $10bn a season.
In an interview with Forbes, Snap Chief Executive Evan Spiegel said the acquisition was about “a lot more than just Instagram”.
“The fact that we’re going to have a whole new business in digital advertising is a big deal for our brand and it’s a huge deal for Instagram,” he said.
“I’m very excited about it.
I think it’s the biggest deal in tech history.
It’s an incredible day.”