The facebook recently announced its purchase of the mobile or portable photo sharing app for a whooping captal up to $1 billion creating ripples in the market. While Facebook owners are ecstatic about the deal, Instagram die-hards communicated mixed emotions.

Amid the buoyant competition and the war-of-words (between the competing loyalists) the most important question that pops up is normally "Why did the social media giant Facebook itself agree to pay $1billion to a company with out an revenue? "

We unlock the reviews for you in the following part of the article:

• It could

According to Facebook's S-1 filing the provider has oodles of cash. Reports suggest that Facebook or twitter has a little less than $4 billion profit on hand, strong reason why it could afford the option.

• It wanted to stay ahead for competition

Facebook did not want any other prospective buyer (presumably Google) to grab Instagram and thus encouraged its way into freezing the deal when using the retro-ized photo sharing app company.

• It wanted to revamp its mobile products

Instagram as a mobile app is really well known and Facebook mobile apps are not this type of killers. Apparently Facebook wanted to cash over the mounting popularity of Instagram by integrating it again into the company to revamp its own phone applications.

• It wanted to pump taste

Facebook is a few years old and some credit reports suggest that it isn't cool anymore. Instagram apparently had 30 million registered users at the time of the main purchase. Facebook wanted to pump the freshness of these users into Facebook and add the latest appeal to the widely popular social network.