A Billion Dollar Deal: Facebook Buys Instagram
This news came as a real shock. Facebook Inc bought the largely popular photo sharing app Instagram for a massive $1 Billion. The announcement of acquisition came form Marc Zuckerberg’s Facebook account. The deal will close during the end of this quarter. A very interesting thing to note is that Instagram do not have a specific business model, yet Facebook has bought this 2 years old app maker at a jaw dropping price of $1 Billion (The biggest ever acquisition by 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 will be building on Instagram’s strengths and features and growing the app independently rather than just trying to integrate everything into Facebook.”
— Marc Zuckerberg (Posted on his FB Timeline)
“We’re psyched to be joining Facebook and are excited to build a better Instagram for everyone.”
— Kevin Systrom (CEO, Instagram)
Team Instagram will also be joining Facebook in further development of the app. Many eyebrows were raised when the news of acquisition broke. Strange and witty remarks were made all over the web regarding it.
Instagram was hugely popular among all mobile users as it offered the quickest and easiest way to share pictures on which Facebook lagged a little behind. Let the world talk about Facebook being scared of Instagram’s popularity, the fact is all business are done with concept in mind. If together these two brilliant companies can make the photo sharing experience better then why not go for the a business acquisition, as both companies will be benefited with it.