Instagram running on a Nexus 4

Luma on Friday announced the small video-sharing app has been acquired by Instagram, and will be permanently shuttered on Dec. 31. According to TechCrunch, Luma's stabilization technology—which is reportedly already being used by Instagram—and workforce will be merged with Instagram. A Facebook spokesperson confirmed the deal.

Users of the little-known Luma app will be able to download their videos before the service officially shuts down later this year. The Luma team said it hopes the acquisition will help both companies improve the quality of video capture; Instagram video was only just added recently, but has already become a popular feature on the social network. Terms of the deal were not disclosed.

Other Luma technology includes basic editing tools—brightness adjustment, exposure, etc.—and the ability to shoot with filters turned on. Instagram itself doesn't give users very much control over much of anything other than allowing users to slap a filter on picture and video, so it's hard to see that changing with this acquisition. But it could hint that perhaps the company will open up to that idea sometime in the future.