Facebook Buys Instagram For $1 Billion
Facebook successfully bought out Instagram, the most popular mobile photo-sharing app (today’s modern “polaroid”) for 30x’s the amount Yahoo purchased Flickr for in 2004. Smart move Mark Zuckerberg.
Facebook and Instagram are hands down the top two photo sharing social media tools. Instagram is like Twitter, but with photos. It has been available for iPhone users and was just released to Android users last week. It’s a great way to share and look at photos from your friends, family, celebrities or complete strangers. You can “like” and “comment” on them. Profiles can be private or public. It would be nice to include a “private message” feature in the next update… ahem.
Put on your dancing shoes, open up Instagram to snap a picture of your fancy feet, add a “hipstamatic” filter (or not), write a couple words (more or less), and post it onto your Instagram feed — and simultaneously to your Facebook, Twitter, Tumblr, Flickr, Posterous, Foursquare and email. Get instant interactions and comments with people who come across your image.
You wouldn’t know it, but Instagram is based in San Franscisco and is still a tiny company, ran by less than 10 people. Whereas Foursquare and other social networking companies have nearly 100 employees.
Facebook Press Release:
MENLO PARK, CALIF.—April 9, 2012—Facebook announced today that it has reached an agreement to acquire Instagram, a fun, popular photo-sharing app for mobile devices.
The total consideration for San Francisco-based Instagram is approximately $1 billion in a combination of cash and shares of Facebook. The transaction, which is subject to customary closing conditions, is expected to close later this quarter.
Mark Zuckerberg, founder and CEO of Facebook, posted about the transaction on his Timeline:
I’m excited to share the news that we’ve agreed to acquire Instagram and that their talented team will be joining Facebook.
For years, we’ve focused on building the best experience for sharing photos with your friends and family. Now, we’ll be able to work even more closely with the Instagram team to also offer the best experiences for sharing beautiful mobile photos with people based on your interests.
We believe these are different experiences that complement each other. But in order to do this well, we need to be mindful about keeping and building on Instagram’s strengths and features rather than just trying to integrate everything into Facebook.
That’s why we’re 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 to even more people.
We think the fact that Instagram is connected to other services beyond Facebook is an important part of the experience. We plan on keeping features like the ability to post to other social networks, the ability to not share your Instagrams on Facebook if you want, and the ability to have followers and follow people separately from your friends on Facebook.
These and many other features are important parts of the Instagram experience and we understand that. We will try to learn from Instagram’s experience to build similar features into our other products. At the same time, we will try to help Instagram continue to grow by using Facebook’s strong engineering team and infrastructure.
This is an important milestone for Facebook because it’s the first time we’ve ever acquired a product and company with so many users. We don’t plan on doing many more of these, if any at all. But providing the best photo sharing experience is one reason why so many people love Facebook and we knew it would be worth bringing these two companies together.
We’re looking forward to working with the Instagram team and to all of the great new experiences we’re going to be able to build together.