According to insiders at Business Insider (naturally), Facebook made the decision within 24 hours to buy Instagram for $1 billion. After word got out that the wildly popular 2-year-old photo-sharing/media company had just received $50 million in funding from investors at a $500 million valuation, Facebook went into "flip out" mode.
CEO of Instagram, Kevin Systrom, reportedly did not want to sell the company and had full intent to grow his business with the $50 million investment. The funding, which came from Thrive Capital, Sequoia Capital, and Greylock Capital, proved to be too much heat in the kitchen for Facebook, who has been reportedly threatened by Instagram for some time. In a move that took even the most tech-savvy individuals by surprise, Facebook solidified the $1 billion deal within 24 hours -- literally doubling Instagram's value over night, while subsequently taking out one of their biggest rivals. In case y'all didn't get the memo, Zuckerberg does not appreciate competition and will do what is necessary to maintain his reign. Even if that means buying and creating other multi-millionaires! (You hear that Pinterest, Twitter?) If divided evenly (they aren't, unfortunately), Instagram's mere 13 employees would be worth $76.9 million each.
In case you're not grasping the magnitude of this acquisition, take a look at this nifty chart of past high-dollar buy-outs: