Facebook buys Instagram for a Billion Dollars
HIGH-TECH: The social network dedicated to the photo has already attracted nearly 30 million users …
The news came as a small bomb on Twitter Monday night: Facebook will buy Instagram for “about a billion dollars” in cash and stock, the company said . The transaction should be complete by the end of Q2.
While Instagram has just landed on Android, Zuckerberg sought to reassure users.”The fact Instagram is connected to other services that Facebook is an important part of the experience. We intend to maintain functions such as the ability to publish the photos on other social networks or not to share them on Facebook if you do not want, “writes the head of Facebook. He swear, it will be possible to continue to follow directly on Instagram users, regardless of Facebook.
Launched in 2010, Instagram has quickly emerged as the most popular photo app on iPhone, with its multiple filters and social networking features, seductive nearly 30 million users.
The astronomical amount for a company that had no business model clearly defined to make money, reacted. Some experts see this as a further sign of a return to an Internet bubble, when companies like Zynga or Groupon is now valued at several billion dollars. But Facebook had to act fast: with the launch of the Android version, the value of Instagram was intended to explode. And if Facebook is the world’s No. 1 photo sharing, the company had so far not been very successful innovation on the mobile front, and Instagram could have become a dangerous competitor. As always in such a deal, the fair price is that the buyer is willing to let go.
The real winners of the case are the Instagram employees. The startup founded by Kevin Systrom and Mike Krieger has only 13 employees, who will become the latest Silicon Valley multimillionaires.