Facebook is buying Instagram for a cool $1 billion in cash and shares. The mobile photo app come social network will remain independent but be owned by Mark Zuckerberg and co.

This news video shows the announcement being discussed. Facebook may have indeed paid over the odds for Instagram but it takes out a growing competitor, so why not?

The tech expert claims Instagram only has eight employees, when actually it has 13. But the point stands, that this is a small team who have achieved big things. And Facebook clearly wants to add the talent to its own pool.

The CEO of the startup, Kevin Systrom, owns 40 percent of Instagram, so when the acquisition goes through he’ll be around $400 million better off. For two years work. The luck so and so.