Instagram is a free photo sharing application that allows users to take a photo and then share it on its own social network, and a variety of others. Facebook recently acquired Instagram for a whopping sum of one billion dollars.
It was the evening of yesterday when I came across the news on CNN Money: Facebook dropped $1,000,000,000 to acquire Instagram, a photo sharing service built by a team of 13. Instagram was started 2 years ago and has grown to have about 30 million users. It started on iOS App Store, and when it launched on Android few days ago, it got 6 million downloads in just 6 days. That was a pretty good start at 1 million downloads a day. With statistics full of such promise, it must have been one of the things that made the eyes of CEO/Founder of Facebook, Mark Zuckerberg, glitter.
Facebook has over 10 billion photos on its network, far beyond the dreams of some other online photo sharing platforms. Amazingly, a report on Business Insider indicates that Mark has only 3 public photos on his Instagram account. But Mark already knows that; Facebook has been struggling hard to gain grounds in the area of mobile photo sharing. What better way to register its presence in the mobile community than to buy over a company with no revenue, but with outstanding growth and popularity in mobile photo sharing, for a price double its value.
“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,” Zuckerberg said in public announcement.
About the Author
Ahmad Mukoshy is an entrepreneur, web designer and developer.