Facebook turns umbrella company via Instagram purchase

Facebook is acquiring photo-sharing app Instagram for approx. $1 billion

Facebook is acquiring photo-sharing app Instagram for approx. $1 billion Photo: Justin Sullivan/Getty Images

Mark Zuckerberg, Facebook’s 28-year old founder and chief, has found himself in a rare and enviable position. Now that his social network has been valued at $100bn, he can comfortably afford to wipe out any of its competitors with large purchase prices and lots of change to spare.

Instagram, with its 30 million users, the majority of which are young, (compared to Facebook’s ageing membership as its popularity grows amongst parents and grandparents) has been scooped up by Facebook for a mere one per cent of its market cap.

The move heralds a new era for the social network. Zuckerberg has personally pledged to not only keep the photo-sharing app open; he has said it will continue to work with other rival social networks, such as Twitter and location-sharing service Foursquare.

Using his own Facebook profile to announce the deal, which is the first of its size for the social network, Zuckerberg stressed that it would be business as usual for Instagram’s 30 million users: “We need to be mindful about keeping and building on Instagram’s strengths and features rather than just trying to integrate everything into Facebook.

“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.”  See Full Post


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Posted on April 22, 2012, in #breaking news and tagged , , , , , . Bookmark the permalink. Leave a comment.


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