Facebook agreed to pay $105 million to acquire Instagram, one of the most popular social media sites in the world, as part of a $1.6 billion deal to buy the company, sources told CBS News.
The deal, which is still in the early stages, is expected to close in the fourth quarter.
Instagram was valued at more than $1 billion before it went public last year.
The acquisition includes about 70 percent of Instagram’s workforce and will also include some of the company’s technology.
Instagram also has a strong presence in China.
The Facebook-owned social media giant has a $4.2 billion cash pile.
The purchase is the second major deal Facebook has done with Instagram.
It bought the company for $1 in 2010 and it’s been paying off dividends ever since.