Monday, April 9, 2012

Facebook Buys Instagram for $1b

One of the most viral mobile photo-sharing app, Instagram has been acquired by Facebook's CEO Mark Zuckerberg.

This has indeed been a surprising/shocking news. Almost no one had expected this, but yet some of us may not be surprised that Instagram would be acquired by a third party, but by Mark Zuckerberg??

To quote Mr. Zuckerberg:

"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."

Facebook has bought Instagram for $1 billion (in cash and in Facebook stock). The deal is said to be sealed by the end of the first quarter of 2012. This venture is expected to rise the status of Facebook's valuation as it is to soon go public.

"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." Says Mr. Zuckerberg (via Facebook update)

Instagram had been a sucessful iPhone app, then released itself to Android users just about a week ago (link). This is can be seen as the second big 'app' buy of the year, since 'Draw Something'.


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