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The purchase of Instagram by Facebook will be similar to what happened when they bought FriendFeed. They will integrate the photo-sharing technology into Facebook to give people that same experience while allowing Instagram to continue to live on as FriendFeed still does.

And just like FriendFeed they've managed to deal with a threat by buying Instagram.

Hema Chhaniyara's profile photoChet Thaker's profile photoRod Dunne's profile photo
Although I know that news is manufactured, so always take it with a dash of salt (and a slice of lime!), I heard on Radio 4 that Zuckerberg stated he will leave it independent and not integrate with FB. Maybe he has another strategy in mind...?
+Hema Chhaniyara Yes he wants to get his hands on the technology. So expect to see Instagram-like features on Facebook photos soon but Instagram will continue to operate as it does today too.
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