Tech giants like Google, Facebook, and Amazon have already spent billions of dollars on acquisitions.
The big question is, will they pay enough?
The deal is worth about $20bn in cash and stock.
According to The Wall Street Journal, Google, which acquired Instagram for $1.6 billion in February, is currently paying a $1 billion fee for the company.
Facebook bought Instagram in February for about $1bn.
The deal will give Facebook access to the entire Instagram user base, and it will allow it to improve the site’s social features.
Amazon bought Instagram for about the same price in August.
The company will continue to use the service and the platform will continue being developed.
The other major acquisition of the day is from Microsoft.
Microsoft acquired Instagram last month for about a third of its value.
Microsoft’s acquisition of Instagram is worth more than Apple’s acquisition last year of Beats, which was worth about as much as the $1 trillion in Twitter cash.
Microsoft has also acquired a handful of startups, including Zoho, which specializes in data analytics.