Facebook buys Instagam for $1 Billion
10 April 2012
Facebook announced a billion-dollar-deal to buy the popular smartphone photo sharing app Instagram who have a staff count of just 13.
An Instagram app for Apple's iPhones, iPads, and iPod touch devices has been downloaded over 30 million times since it was released in 2010 and who has yet to make a profit.
A version of the application tailored for Google-backed Android software racked up more than a million users in the 24 hours after its release recently.
The free camera app lets people give classic looks to photos and then share them at Twitter, Facebook or other social networks. Apple crowned Instagram its app-of-the-year for 2011.
The popular photo sharing network Flickr, was bought by Yahoo! for $35m in 2005, though it had a fraction of Instagram's user base at the time
"We've focused on building the best experience for sharing photos with your friends and family," Facebook co-founder Mark Zuckerberg said in announcing the deal. "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," he added.
Zuckerberg called the acquisition "an important milestone for Facebook because it's the first time we've ever acquired a product and company with so many users" but promised it was a rare acquisition.
Facebook in February 2012 filed for a stock offering and could raise as much as $10 billion in the largest flotation ever by an Internet company on Wall Street. Facebook - the leading social network in all but six countries, notably China and Russia - claims more than 845 million users. Its value has been estimated at between $75 billion and $100 billion.
Facebook likely wanted to keep Instagram out of the hands of rivals while at the same time ramping up mobile offerings as people increasingly weave smartphones and tablet computers into lifestyles, according to sources.
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