9 Apr 2012

Facebook Buys Instagram For $1 Billion



By Josh Constine at TechCrunch
Facebook has just finished a deal to acquire Instagram. The compensation will be approximately $1 billion in cash and stock. Instagram will remain a standalone app from Facebook, but the services will have increasing ties to each other. The transaction should go through this quarter pending some standard closing procedures
Last year, documents for a standalone Facebook mobile photo sharing app were attained by TechCrunch. Now it seems Facebook would rather buy Instagram which comes with a buit-in community of photographers and photo lovers.
At 27 million registered users on iOS alone, Instagram was increasingly positioning itself as a social network in its own right — not just a photo-sharing app. And it was clear that some users were doing more of the daily sharing actvities on Instagram rather than Facebook’s all-in-one mobile apps, which had to be cluttered with nearly ever feature of the desktop site.
Instagram will gain massive design and engineering resources by joining forces with Zuckerberg. Still, the deal to stay somewhat independent will allow the historically lean Instagram to maintain some of its company culture.
Mark Zuckerberg posted the following letter to his Timeline about the purchase:
I’m excited to share the news that we’ve agreed to acquire Instagram and that their talented team will be joining Facebook.
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.
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.
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.
We’re looking forward to working with the Instagram team and to all of the great new experiences we’re going to be able to build together.
[Additional reporting by Kim-Mai Cutler]

Filled Under:

0 comments:

Post a Comment

The Next Web

The Verge

ClickZ Marketing

Cool Infographics

Trending Posts