Today’s Note: Facebook, Instagram, IPO’s and One Billion Dollars
By now, you have probably heard that Facebook is planning to acquire Instagram for the tidy sum of a billion dollars. Instagram, the three year old photo editing and sharing tool for iPhone (and more recently, Android), has been something of a darling in the mobile applications market. Facebook, on the other hand, has made a habit of gobbling up startup companies and dismantling them. Laurie Segall’s article. “Facebook acquires Instagram for $1 billion“. on money.cnn.com discusses the context of the deal: “it’s Facebook’s biggest acquisition ever, in both price and reach. With around 30 million active users, Instagram has the largest audience of any startup Facebook has purchased, Facebook CEO Mark Zuckerberg said in a blog post.” [italics are added by me, and denote a quote from the original article]
Segall describes Instagram in these interesting words: “Founded in 2010 by Mike Krieger and Kevin Systrom, Instagram has just a handful of employees supporting its wildly popular photo app, which lets users add distinctive filters and visual flair to photos they’ve snapped on their smartphones.” The expansion to Android was much anticipated by Android users, and as the author notes, “the long-awaited Android version, released last week, racked up more than 1 million downloads in just 12 hours. The launch also met a backlash from iPhone users, who enjoyed having an exclusive hold on the stylish service.“
Facebook’s plans for Instagram don’t seem to be to shut it down and re-assign its talent, nor to absorb it. According to the article:
“We’re committed to building and growing Instagram independently,” theCEO said. ”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.”
The pairing of these two companies makes for one of the more interesting stories of the young year. The article includes an interesting embedded video. I recommend this article to get you up to speed on the story. Enjoy!