Google is making good on a promise to buy the company that helps people share photos, videos and other content with each other.
The tech giant is expected to buy Med Cafe in a deal valued at about $2 billion, according to people familiar with the matter.
Google is one of the most popular online destination providers, having been the number one site for many years and a dominant player in online advertising and social networking.
Its $1 billion acquisition of photo-sharing site Instagram last year raised eyebrows as a potential cash grab, but it also was seen as a major step toward the company’s goal of becoming a content-centric tech company.
Google acquired Instagram in 2015 for $1.6 billion.
The deal is expected close by the end of the year, the people said.
The acquisition is a major milestone for Google, which is expected by analysts to report third-quarter revenue that beat analysts’ estimates.
Google announced in August that it had closed a $10 billion funding round, including a $2-billion seed round led by Sequoia Capital, and it plans to launch its own $100 million Series A fund, as it has in the past.
The company said at the time that it would be “a leader in innovation” by investing in its technology, as well as its growing presence in the consumer space, but didn’t provide details about what the money will go toward.
Med Cafe is a photo-editing and sharing service for people who have a smartphone.
Google said the company will retain some Med Cafe employees and will “support them as they work on our new product.”
The deal with Med Cafe also marks the latest Google acquisition of a tech company with a big presence in social networking, and could be a harbinger of more big tech acquisitions in the near future.
Facebook bought Instagram for $3 billion in 2015.
Google has been working with other tech companies, including Pinterest and Airbnb, to try to develop its own digital services.
The companies said they would not discuss any specifics about the deal with The Wall Street Journal.
Twitter, Instagram and others have also spent significant amounts of cash to acquire other tech giants.
Twitter has also been trying to scale up its own product offerings.
The social network said it would spend $20 billion to acquire video-sharing service Vine.
Airbnb said it had signed a $3.4 billion deal with Google to purchase its own suite of products.
The latest Google deal is the first big tech acquisition of an online service provider since Facebook bought photo-sizing site Zoom back in 2014.
Google already owns the popular photo- and video-storage service Flickr, as a result of a long-running legal battle with Flickr over copyright.