Facebook founder Mark Zuckerberg has said that Facebook will acquire Instagram, an internet start-up, for $ 1 Billion.

Facebook is planning to acquire an Internet start-up in San Francisco called, Instagram for a whooping $1 billion even as the company is less than two years old and generates no revenue.

Instagram, which has about a dozen employees, is the maker of a social network built around photography that offers mobile apps that allow users to edit their pictures with quirky effects and share them with friends.

The acquisition, which seems overly expensive to many, could give a stronger position to the company in the mobile market. Instagram has several competitors in the market, however, it is unique and has huge fan following. The company has 30 million users who upload more than 5 million photos a day.

Instagram was available for only Apple devices until last week till the company released a version for devices running on the Android platform. Instagram was founded by two Stanford graduates and has been productive for a couple of years. Early investors in the company and its owners are likely to benefit from the sale.