Facebook’s stunning decision to pay $1bn in cash and stock for photo-sharing platform Instagram has raised suggestions it did the deal to absorb a potential rival — or pre-empt a move by a rival such as Twitter.

Twitter has bought TweetDeck, a London-based start-up that helps people read, write and organise the short messages posted on the online network.

Social networking site Facebook has landed a cash injection from a major Wall Street bank which values the company at $50bn (€37.54bn), it was reported today.