Facebook has agreed to acquire Instagram photo-sharing application for $1 billion, Instagram, making its largest-ever acquisition. After the acquisition, Instagram's team will be joining Facebook. Instagram's application is expected to help Facebook build a better experience for its users for sharing mobile photos with people based on their interests.

"We plan on keeping features like the ability to post to other social networks, the ability to not share your Instagrams on Facebook if you want, and the ability to have followers and follow people separately from your friends on Facebook," Facebook CEO Mark Zuckerberg said in a blog post. "We will try to learn from Instagram's experience to build similar features into our other products," he added.

The deal is expected to close this quarter.