Facebook to buy Instagram

The U.S. Federal Trade Commission has cleared Facebook Inc’s acquisition of the popular photo-application Instagram, Reuters reports. The deal, which is valued at roughly $757.1 million, will be Facebook’s largest acquisition ever.

Instagram is an application which allows users to add filters and effects to pictures taken on their smartphones, and and share them via social media. Acquiring the company could improve Facebook’s integration with smartphones, a weak point in the company’s growth strategy.

Under the terms of the deal, Facebook will acquire Instagram for $300 million in cash and roughly 23 million shares of Facebook common stock, which is valued at $19.44, a 50% drop from the company’s value at the initial public offering in May.