Today it was announced that Facebook was buying Instagram for 1 billion dollars. For those of you who have been living under a rock for the past year, up until last week Instagram was an iPhone exclusive app that allowed users to take pictures, apply filters and upload them for sharing. This app has exploded with popularity and accumulated over 15 million users since its release. Facebook’s motive for purchasing Instagram for such an outragious price was to make sure that they control the photo sharing aspect of social media. They want to make sure that Facebook remains the only necessary outlet for social media. Instagram’s large user base attracted Facebook because they managed to do something better than Facebook.
Facebook creator and CEO Mark Zuckerberg commented on the fact that this was Facebook’s biggest investment as a company, saying, “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.” Sharing information is the key principle behind everything Facebook is, and Instagram is just another way to share things with the world.
Facebook does not plan to completely dissolve Instagram into Facebook, but instead will keep it as its own stand-alone application. Users can still share photos with people who are not their Facebook friends and can also share them to other social networking sites.
In the end, it is hard to tell if Instagram will really be worth the 1 Billion that Facebook has invested into it. This would mean that every one of Instagram’s 15 million users are worth 16.6 dollars to Facebook, despite the fact that the App is completely free to download. What do you guys think about Facebook buying Instagram? Do you think it was a good investment on Facebook’s part or do you wish Instagram had stayed its own company? Let me know in a comment!