Today, Facebook bought popular photo-share network Instagram for $1 billion as a combination of cash and stocks.
Facebook CEO Mark Zuckerburg said in a blog post earlier that with 30 million users, Instagram has the largest audience of any startup Facebook has purchased. That means that this could be Facebook’s biggest purchase to date, in sheer reach as well as it’s steep price.
Zuckerburg also said that we won’t see Facebook attempting many more of these big-time purchases, “but providing the best photo-sharing experience is one reason so many people love Facebook and we knew it would be worth bringing these two companies together.” Its clear that this will be a profitable move for Facebook, but Zuckerburg is wise to not overdo it when it comes to big purchases.
Instagram was founded two years ago in 2010 by Mike Krieger and Kevin Systrom. The company has only a few employees that keep the popular smart-phone app up and running. The app allows users to alter the look of photos through a variety of filters and vintage flair. It gives photos regular photos snapped with the smart phones an artistic and creative new look.
Just last week, the application became available for Android users. This was long overdue in the opinions of Android users, who are happy to gain access to the fun to use app. However, iPhone users are feeling as if their exclusively stylish photo-editing app shouldn’t have been made so widely available. The app was only previously available for Apple devices. The app prevailed though, with over a million downloads by Android users within its first twelve hours on the market.
Ironically, just over one short month ago, Instagram owners Kriegel and Systrom stated that they have absolutely no interest in selling Instagram in the near future. “We’re pretty focused on remaining an independent company right now,” Systrom said recently in an interview with CNNMoney. Apparently $1 billion in cash and stocks is quite persuasive.
Zuckerburg commented on Instagrams future with Facebook, saying that they are “committed to building and growing Instagram independently. Millions of people around the world love the Instagram app and the brand associated with it, and our goal is to help spread this app and brand it to even more people.” They want to make it clear the Instagram is not going away or changing, but actually will become more prominent and more easily accessible. It’s easy to see that the app will have a bright future with Facebook.