Today in Tech: Facebook buys Instagram for $1 billion, boosts mobile strategy?

Fortune's curated selection of tech stories from the last 24 hours. Sign up to get the round-up delivered to you each and every day.

* In a surprising move, Facebook is buying Instagram for $1 billion. Did Instagram's latest round of funding cause Facebook to panic? More importantly, will the insanely popular photo-sharing app solve the social network's mobile problems? Also, a brief profile of Instagram founder and CEO Kevin Systrom. (Fortune and The Wall Street Journal)

* Microsoft (MSFT) will pay AOL (AOL) nearly $1 billion to get 800 patents and related patent applications, likely in a bid to keep those patents away from Google (GOOG). (CNET)

* Despite Apple's (AAPL) ascendant shares, one analyst has shifted his rating from "neutral" to "buy." (All Things D)

* Why AT&T (T) is spending more on the launch of Nokia's Lumia 900 handset than it did on the iPhone. Also, the company plans to sell its long-standing Yellow Pages business to Cerberus Capital Management. (Ad Age and CNNMoney)

* PayPal's Vice President of global product and experience, Sam Shrauger, is leaving the company. His departure comes on the eve of the announcement that Yahoo (YHOO) is restructuring. (All Things D)

Don't miss the latest tech news. Sign up now to get Today in Tech emailed every morning.