Facebook is not waiting for its initial public offering to make its first big purchase.

The social network has acquired Instagram, the popular photo-sharing application, for about $1 billion in cash and stock, the company said on Monday.

In a Facebook post on a profile page, the company's chief, Mark Zuckerberg, said he planned to build Instagram independently from the social network. The move will allow users to post on other social networks, follow users not on Facebook, and to opt out of sharing on Facebook.

"For years, we've focused on building the best experience for sharing photos with your friends and family," Zuckerberg wrote.

"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."

In recent years, Facebook has made several acquisitions; however it has mainly aimed at smaller companies of less than $100 million .

AOL to sell, license patents to Microsoft

AOL , under shareholder pressure to make strategic changes as revenue declines, agreed to sell and license patents to Microsoft in a deal worth $1.06 billion. The internet company will sell more than 800 patents and related patent applications to Microsoft and grant the software maker a non-exclusive licence to its retained patent portfolio, the companies said in a statement on Monday. AOL will hold more than 300 patents and patent applications after the deal. The deal lets New York-based AOL generate more funds.

Source :timesofindia.indiatimes.com