Facebook acquires Instagram for $1 billion

Even though it's planning to launch its IPO later this year, that isn't stopping Facebook from making a truly monster deal. Today the company announced it would be acquiring Instagram, the company behind the popular photo editing and sharing app for iOS and Android devices, for a huge $1 billion price tag. The acquisition will be a combination of cash and Facebook stock and will officially close by the end of the second quarter.

Instagram launched on October 2010 for the iOS platform. The Android version was launched just last week; Instagram says it now has about 30 million registered users.

In his personal Facebook page, company CEO Mark Zuckerberg says that Facebook is "committed to building and growing Instagram independently." He adds:

We think the fact that Instagram is connected to other services beyond Facebook is an important part of the experience. 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. These and many other features are important parts of the Instagram experience and we understand that. We will try to learn from Instagram's experience to build similar features into our other products. At the same time, we will try to help Instagram continue to grow by using Facebook's strong engineering team and infrastructure.

Even though Facebook is making this particular deal, this will be a rarity for the company in terms of acquiring another business that has so many users, with Zuckerburg saying, "We don't plan on doing many more of these, if any at all."

Instagram's own CEO Kevin made his own blog post about the Facebook deal, saying:

It’s important to be clear that Instagram is not going away. We’ll be working with Facebook to evolve Instagram and build the network. We’ll continue to add new features to the product and find new ways to create a better mobile photos experience. The Instagram app will still be the same one you know and love. You’ll still have all the same people you follow and that follow you.You’ll still be able to share to other social networks. And you’ll still have all the other features that make the app so fun and unique.

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dotf said,
Wonder how many people will leave Instagram now........

Why? Because Instagram was cooler than Facebook before it became Facebook or something?

Shadrack said,

Why? Because Instagram was cooler than Facebook before it became Facebook or something?

I used Instagram a couple of times. I thought it was kind of silly, all it really did is host and ruin good photos with bad effects. Now that it's a Facebook owned product I have less desire to use it. It's not that it makes the quality of the app/service any better or worse, it's just that a lot of people prefer not to use Facebook owned apps and services.

Amarok said,

I used Instagram a couple of times. I thought it was kind of silly, all it really did is host and ruin good photos with bad effects. Now that it's a Facebook owned product I have less desire to use it. It's not that it makes the quality of the app/service any better or worse, it's just that a lot of people prefer not to use Facebook owned apps and services.


Its like Justin bieber and 1 Direction... Alot of people think they are cool... But they seem to all be from 1 or 2 demographics...

I did not see what the point of Instagram was considering alot of people just posted it to FB + Twitter anyway....

It was like an app which applied an effect and posted links to social networks... Cuz there isnt enough of them already out...

Minimoose said,
What does instagram do other than add hipster photo effects to photos and upload them to the interwebs?

Not much, but that's not its value for Facebook. It's a strategic move, that's why Facebook is digging so deep in its pockets.

By doing this, Facebook will ensure a) they get the most popular retro photo app today with tens of millions of users in its own social network, b) no competitor will become the owner, c) they get a hip and popular brand name, d) it strengthens Facebook's position in mobile, a place they really need to find a better way to exploit. They're currently very big in mobile, but with almost no revenue. Expect changes there...

As long as my news feed doesn't get flooded with faux vintage pictures, i'm cool.
then again, most FB pics are already stupid without instagram.

One question springs to mind... Why?

Seriously what do Facebook have to gain from this that they deem is worth 1 billion dollars! I thought instagram was just a small ****ty photo effects/sharing program?

Isn't there plenty of other apps/services out there that do the same? If not better?

Ently said,
One question springs to mind... Why?

Seriously what do Facebook have to gain from this that they deem is worth 1 billion dollars! I thought instagram was just a small ****ty photo effects/sharing program?

Isn't there plenty of other apps/services out there that do the same? If not better?

With the opinions on the apps quality aside, I think the draw of Instagram was that it was a successful social network that started on a mobile platform (iOS) and it surpassed 10 million registered users 11 months after opening its doors. If I remember correctly, people made a big deal about it because of how fast the network grew on a single platform, and not really so much about its, "neat," image filter set.

Ently said,
One question springs to mind... Why?

Seriously what do Facebook have to gain from this that they deem is worth 1 billion dollars! I thought instagram was just a small ****ty photo effects/sharing program?

Isn't there plenty of other apps/services out there that do the same? If not better?


Tech is less important as it can be improved within a few months. Instagram is a hip and popular brand name, and they have quite a number of users. Probably the most used retro-style photo app today. This is a far more rare, and valuable, commodity than a number of software features.

Facebook $1 Billion is not enough we want stock options also than I will sell my apps to you ;-). Who would seriously turn down $1 Billion to sell there app? I would be settled for a lifetime now.

WarioTBH said,
If im honest... i thought Apple would of bought Instagram ahead of Facebook.

I thought that Instagram was an Apple product until I downloaded and tried it. Wasn't it brought up in the iPhone 4S or the iPad 2 launch event? I'm pretty sure it was.

Shikaka said,
If im honest... i thought Apple would of bought Instagram ahead of Facebook.

Wouldn't surprise me they planned to and FB picked up on it..

Now since Instagram has been sold to Facebook and Facebook is good friends with Microsoft, will there finally be a Instagram app for Windows Phone 7?

JSYOUNG571 said,
Now since Instagram has been sold to Facebook and Facebook is good friends with Microsoft, will there finally be a Instagram app for Windows Phone 7?

Instagram for METRO!

They're buying the userbase. Yeah, we all know Instagram is just a very basic app that uploads your photos to the web. However, how many non-techie people know how to upload a photo to somewhere other than Facebook, especially from their phone?

Zuckerberg and co. are fiends for data, in particular YOUR data. How many of you use Facebook every single day? How many of you used it 24/7 before dwindling into checking it once a month or so? I bet there's a lot of people much like myself that barely use Facebook anymore, but we may use Instagram several times a day. Zuckerberg is expanding his data pool.

Well that app just got uninstalled. Facebook lol.. They want ALL of your private data, now they can have it instantly. Twitter will be next. We might have to quit the internet.

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