You’d have to be living under a rock for the last few years not to have heard of Facebook, the social networking site. Mark Zukerberg’s idea has now gone viral. Anyone who is anyone needs a Facebook account. It connects friends and families, promotes businesses, and keeps the masses connected and entertained.
Instagram is a photo sharing application. It was doing quite well without Mark Zuckerberg’s endorsement. It had over 30 billion registered users, and that was when the application was only available on the iPhone. Instagram made its services available for the android market, the application was downloaded over 5 million times within the first week of being released. It’s no surprise that the value of Instagran stocks and shares continued to climb.
Inevitably, this caught Zuckerberg’s attention. The CEO f Facebook said himself that he wanted the best photo sharing experience for his Facebook users, and knew it would be worth merging the two companies.
Facebook has acquired Instagram in a $1 billion deal, consisting of stocks and cash. The nine-person staff of Instagram will be transferred to Facebook in a move that should take place sometime next quarter. Zuckerberg says that this is more than just a company merger, though. He says that he wants to capitalize on Instagram’s strengths and features. Part of that will be photo sharing among non-Facebook users, making it even easier to connect with others.
Instagram also seems enthusiastic about the merger. CEO Kevin Systrom says that he’s excited to be building a better service for everyone.
This could also be a very shrewd move on the part of Facebook’s investors, though. A comparatively small financial investment made to incorporate what could very well be a competitive threat is simpl