Facebook recently acquired the photo sharing company Instagram. For $1 Billion dollars, Facebook acquired some big-dog talent in the social photo business. You may be wondering why they did and how on earth they justified paying so much. Here are five articles that you must read to better understand Facebook’s staggering purchase.

3 Marketing Lessons From Facebook’s Instagram Acquisition

By Matthew Siegel

Pages upon pages of commentary have been written about Facebook’s acquisition of Instagram, the astronomical valuation applied to the deal, and the competitive impetus for the transaction. But what’s most interesting is what it implies about Facebook’s perspective on content creation versus content distribution.

Why Facebook Bought Instagram: IPO Buyers And Apple
By Tomio Geron

Instagram will add chops on Facebook’s mobile product side, boost Facebook’s photo sharing and give Facebook’s audience on mobile more to look forward to. In addition to that, and maybe just as importantly, the acquisition helps Facebook’s IPO.

Facebook and Instagram: When Your Favorite App Sells Out
By Paul Ford

For many Instagram users it’s discomfiting to see a giant company they distrust purchase a tiny company they adore — like if Coldplay acquired Dirty Projectors, or a Gang of Four reunion was sponsored by Foxconn. So what’s going on here?

Facebook Plays Offense and Defense in a Single Deal
By Somini Sengupta and Nick Bilton

Facebook’s purchase of Instagram was an effort to push into a new area before its rivals. As YouTube and PayPal did for Google and eBay, Instagram offers something that Facebook desperately needs — a whole new audience that uses technology in a totally different way.

When Did Facebook Become So Uncool?
By John D. Sutter

Facebook and Instagram’s images couldn’t be more different, so it’s tempting to say that this Goliath-buys-David event is a turning point for Facebook. But people have been writing about Facebook losing its mojo for years now.