Facebook acquires Instagram for $1 billion

Posted:
in General Discussion edited January 2014


Facebook announced on Monday that it has agreed to purchase Instagram, the maker of the popular photo sharing service for iPhone, for $1 billion.



Facebook will acquire the San Francisco-based company for a combination of cash and shares in Facebook totaling $1 billion. The transaction is expected to close this quarter.



In a statement, Facebook CEO Mark Zuckerberg said he is committed to building and growing Instagram independently, meaning it will not be tied into Facebook's existing social networking website.



"We think the fact that Instagram is connected to other services beyond Facebook is an important part of the experience," Zuckerberg said. "We plan on keeping features like the ability to post to other social networks, the ability to not share your Instagrams on Facebook if you want, and the ability to have followers and follow people separately from your friends on Facebook."



Instagram has been one of the most popular applications for the iPhone, routinely appearing among the top downloaded applications for iOS. With the application, users can take a picture and apply a digital filter, then upload and share pictures on a variety of social networking services, including Instagram's own.











Instagram first launched in the iPhone App Store in October of 2010, and it eventually made its way to the Google Android platform just last week, achieving more than a million downloads via Google Play in less than 24 hours. Facebook's announcement that it will acquire Instagram comes just six days after the application became available for Android.



Apple itself highlighted Instagram in December with its own iTunes Rewind 2011 selections. Apple's editorial team selected Instagram as the iPhone application of the year for 2011.



[ View article on AppleInsider ]

«134

Comments

  • hittrj01hittrj01 Posts: 746member


    Is it just me, or did this come from WAY out in left field?
  • techboytechboy Posts: 183member
    Are they even generating revenue??? Not that I care if Facebook wants to throw away their money, just saying.
  • clemynxclemynx Posts: 1,411member
    Too bad. I'm going to stop using it then. I don't want my pictures to be used by FB.
  • macvictamacvicta Posts: 346member
    Time to find an Instagram alternative.
  • gatorguygatorguy Posts: 14,813member
    Facebook can find you in someone else's pics using their unique facial recognition implementation, something my son didn't like at all (altho he thought it was cool at first). He said a couple kids at school got in trouble for pictures their parents found in other kid's albums by just searching for them by their name, even tho their name was never mentioned in the picture descriptions. Facebook's software simply matched the images. With pictures often geo-tagged as well, combining your image with your name and profile could place you in a time and place without having to physically track you.



    A little disconcerting if you don't anticipate it IMO.
  • wurm5150wurm5150 Posts: 763member
    They said Instagram has no business model and no clear plan of monetizing their service.. Turns out they have. Get Facebook to buy them and grossly overpay.
  • applephanapplephan Posts: 8member
    App is now deleted, just like facebook
  • zklauszzklausz Posts: 16member
    If you can't beat 'em, eat 'em
  • nasseraenasserae Posts: 3,144member
    Quote:
    Originally Posted by Wurm5150 View Post


    They said Instagram has no business model and no clear plan of monetizing their service.. Turns out they have. Get Facebook to buy them and grossly overpay.



    Things are changing. This is the age of collecting users information. Instagram business model is to have as many of your pictures as possible and to link them to your Facebook or twitter account. Facebook want access to more of your personal data including pictures. The more they know about you the more accurate ads they serve you. Not to mention MS Bing share of the collected users data.
  • patranuspatranus Posts: 366member
    [IMG][/IMG]
  • nasseraenasserae Posts: 3,144member
    Quote:
    Originally Posted by zklausz View Post


    If you can't beat 'em, eat 'em



    Instagram was not competing with Facebook. They were setting themselves to be acquired by Google, Twitter, or Facebook.
  • mdriftmeyermdriftmeyer Posts: 6,871member
    Instagram for $1 Billion?



    NeXT Inc and all it's IP for $400 Million.



    Yes, today's 20 somethings really know value. NOT!
  • naboozlenaboozle Posts: 213member
    Quote:
    Originally Posted by NasserAE View Post


    Things are changing. This is the age of collecting users information. Instagram business model is to have as many of your pictures as possible and to link them to your Facebook or twitter account. Facebook want access to more of your personal data including pictures. The more they know about you the more accurate ads they serve you. Not to mention MS Bing share of the collected users data.



    Such a stupid business model. Like many people I take steps to actively avoid online ads. Of the ones that sneak through, I pay little heed to them and the more they are "targeted" at me the more obvious and ridiculous they are.
  • irelandireland Posts: 15,570member
    I am going to vomit!!!!!!!!!!!!!!!!!!!!!



    F U C K sake Apple! If you let Twitter slip away I won't forgive you. I have been tweeting you to buy Instagram for 6 months!
  • apple ][apple ][ Posts: 8,128member
    I am pleased to say that Facebook doesn't know a single thing about me, and they never will.



    As for Instagram, well good for them. If somebody can make an app and then sell their company for a billion dollars a short time afterwards, then I'd say that's a decent achievement. Personally, I don't use Instagram, as I'm not a retarded hipster and I'm not into taking crappy photos and then applying all sorts of dumb filters to them. But to each their own.
  • irelandireland Posts: 15,570member
    Quote:
    Originally Posted by mdriftmeyer View Post


    Instagram for $1 Billion?



    NeXT Inc and all it's IP for $400 Million.



    Yes, today's 20 somethings really know value. NOT!



    That says more about the dollar than anything else.
  • ungenioungenio Posts: 49member
    Quote:
    Originally Posted by NasserAE View Post


    Things are changing. This is the age of collecting users information. Instagram business model is to have as many of your pictures as possible and to link them to your Facebook or twitter account. Facebook want access to more of your personal data including pictures. The more they know about you the more accurate ads they serve you. Not to mention MS Bing share of the collected users data.



    There are like 27 million users of Instagram... That's like paying $37 for each one. How they are planing to recover that money, user wise? I guess they eventually integrate it to Facebook, whatever they say now
  • nasseraenasserae Posts: 3,144member
    Quote:
    Originally Posted by Naboozle View Post


    Such a stupid business model. Like many people I take steps to actively avoid online ads. Of the ones that sneak through, I pay little heed to them and the more they are "targeted" at me the more obvious and ridiculous they are.



    I do the same thing too. I don't even see ads since I use AdBlock. But you will be surprised how many people out there click those ads. It is stupid business model but it works! $1 billion for a two year business is super success.
  • applezillaapplezilla Posts: 941member
    Double click home. Hold icon until wiggle. Delete app.



    Done.
  • nhtnht Posts: 3,037member
    Quote:
    Originally Posted by Ireland View Post


    That says more about the dollar than anything else.



    $622.5M in 2011 dollars. But hey, it's not a valid social .com acquisition unless you overpay.
Sign In or Register to comment.