Facebook Buys Instagram App for $1 Billion Dollars

Instagram is a photo sharing app for smart phones and it is actually pretty entertaining if I say so myself.  The app allows you to take a picture from the application and edit the picture using photo effects, which makes the photo look the way you want it to.  The question is though, why would Facebook spend one billion dollars on this app?

After reading up on this controversy I came to the conclusion that Facebook bought this app because Instagram has 30 million users.  This would be great networking for Facebook, although they are doing better than ok without it.  And now that the Android carries Instagram the  user status has dramatically increased.  Which is another relevant reason to why Facebook would want to buy out Instgram so bad and for so much money.

Instagram may have more users than Facebook, but it does not have much revenue considering the app is free.  As for Facebook, they do not need to expand on user’s, but with this app on facebook they can now invite all of these users (over 100 million) to join their network.  After all, it is pretty genius of Facebook because not only are they spending this money but they will surely profit more in the end.

Many Facebook users are now using the Facebook app which they can connect to Facebook through their mobile phones.  But with Instagram users are now able to upload their picture on the app and attach it to Facebook.  It is crazy how Facebook can buy out a company for one billion dollars and probably profit more than they could ever imagine.  I would think Zuckerberg (the founder of Facebook) would be more than satisfied with the outcome of the networking company.  Apparently not, the billionaire wants more and he will get it because he already bought out Instagram.

Also, Facebook has plenty of filter data throughout the network, so why woud it need more applications.  Well, the answer is quite simple because Instagram is full of consistent users and if they can connect their photos from Instagram to Facebook they are now paying Facebook to share their files.  This is a huge benefit for Facebook and for one billion dollars I would be ecstatic if I were the CEO of Instagram.  In the long run, everyone will be happy.  But what will this young billionaire do next?  I fell like he has so much in store, this is only the beginning.

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