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The virtual world keeps getting more expensive!
Facebook buys photo sharing site/app Instagram for $1 Billion in stock and cash.
I think that this is a good buy for Facebook because Instagram is becoming very popular. 30 million users already and only on the Apple iOS. Instagram just launched an Android app which should get it more users. Young people especially love sharing and liking photos, and following others. Instagram also allows you to edit your photos with different effects; to make them look old, shiny, cartoonish, etc. It is fun and easy to use, which is probably why it's becoming so popular. They are riding the mobile trend and the fact that every mobile device now has a camera.
If Facebook hadn't bought Instagram, someone else probably would have. Although Instagram doesn't have any revenues and is barely one year old, it shouldn't be hard to monetize with all the photos having keyword hashtags. Facebook likely won't change too much right away in order to keep users happy. It is a good purchase for them; they keep Instagram from their competitors and gain from the growing user base of photo sharers.
If Facebook grew up on dorm room — and later family room — laptops, Instagram's success was firmly based on mobile devices, and although its 30 million-strong user base is a mere drop in the bucket compared to Facebook's 850 million-plus, CEO Mark Zuckerberg saw the writing on the wall: His about-to-go-public company is vulnerable to smaller, more agile, mobile-based apps and services, and it makes more sense to buy them than fight them.
to read the full article, click below:
http://ca.finance.yahoo.com/blogs/insight/facebook-acquires-instagram-behind-bold-billion-dollar-buy-121857870.html
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