Facebook To Buy Instagram For $1 Billion

 

MSNBC

 

If a picture is worth a thousand words, a website with a boatload of pictures is now worth $1 billion.

 

That is the price Facebook agreed to pay for Instagram, a less-than two-year-old company that makes a wildly popular mobile photography application.

 

"I'm excited to share the news that we've agreed to acquire Instagram and that their talented team will be joining Facebook," Facebook's head honcho Mark Zuckerberg said in a posting on Facebook (where else?) Monday.

 

Facebook, which is busy planning an initial public offering that could value the social networking at more than $100 billion, will pay a combination of cash and stock for Instagram, Reuters reported. Based in San Francisco, Instagram has about a dozen employees. The deal is expected to close by June 30.

 

"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," Zuckerberg said in his Facebook post.

 

Facebook is expected to raise up to $10 billion in its IPO, which could come in May or June.

 

Last year, Facebook reportedly was planning to add filters and other tools to its mobile photography app to match Instagram's popular filters, which allow users to manipulate images to make them look old-timey and add other kinds of effects. The aim was to attract Instagram users and meet a competitive threat.

 

"We’re psyched to be joining Facebook and are excited to build a better Instagram for everyone," Instagram CEO Kevin Systrom said in a statement.

 

He also promised the acquisition would not alter the Instagram experience for its approximately 30 million users.

 

"The Instagram app will still be the same one you know and love. You’ll still have all the same people you follow and that follow you. You’ll still be able to share to other social networks. And you’ll still have all the other features that make the app so fun and unique," Systrom said.

 

Last week, Instagram made the long-awaited announcement that its app was available for users who run Google's Android on their smartphones. Prior to that it was only available on iPhones. The Android app reportedly nabbed about 1 million downloads in the first 24 hours.

 

The acquisition was a strategic departure for Facebook, which until now has been content with buying startups on the cheap for their talent. Instagram will run as an independent app with its own brand.

 

"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," Zuckerberg said. "We don't plan on doing many more of these, if any at all."

 

Since Instagram's founding in the autumn of 2010, it has gathered about $50 million in venture funding. That includes about $500,000 in seed investment in March 2010 from Andreesen Horowitz and Baseline Ventures, according to the website Crunchbase.

 

Last year the company raised another $7 million, and this year the company just closed a $50 million round of funding that valued the company at $500 million, according to TechCrunch, meaning those investors virtually doubled their money overnight.



Follow Me

Join Our Facebook Fan Page Check Us Out On MySpace Follow Us On Twitter Follow Me On Youtube

Views: 9418

Tags: $1, Buy, Facebook, For, Instagram, To, billion

Comment

You need to be a member of ThisIs50.com to add comments!

Join ThisIs50.com

Comment by Bad Habits on April 9, 2012 at 5:18pm
@the kid true story bro pics r def gonna be getting deleted
Comment by THE KID on April 9, 2012 at 5:02pm
Man.... The Feds really gonna be on that A$$ now... Leave those pics alone!



Upcoming Releases

Members

 


Example Searches:
music, girls, Bentley

Latest Activity

Tyrus Starr commented on corentin's blog post Shad Moss Reveals Ciara And Angela Simmons Bedroom Skills
"B*******!"
4 minutes ago
Tyrus Starr commented on ChasinDatPaper's blog post DJ Mustard - 10 Summers (Album Cover/Tracklist/Features)
"Maybe!"
7 minutes ago
T.T.S. commented on ChasinDatPaper's blog post Craigslist Murders: Pregnant Wyoming Teen Strangled, BF Decapitated After Sexual Rendezvous With Stranger [Video/Pics]
"Weirdo sh*t ended up being fatal. Two idiots trusting some caveman looking creep."
9 minutes ago
ThisShitRightHereNigga liked ChasinDatPaper's blog post 'Power' Star Lela Loren x Chelsea Lately: Talks Having 50 Cent As A Boss + Sex Scenes [Video]
10 minutes ago
T.T.S. commented on NewMusic's blog post Tameka "Tiny" Harris - What The F*ck You Gon Do? (Official Music Video)
"Those voice altering algorithms are being pushed to the limit here. Let's listen to her live."
11 minutes ago
King Siddy commented on corentin's blog post Shad Moss Reveals Ciara And Angela Simmons Bedroom Skills
"This dummy fell for it! And be wonders y they both moved on...... Lol"
11 minutes ago
Besir Esati and MrArcherthePromoter are now friends
13 minutes ago
GEHAI commented on ChasinDatPaper's blog post Craigslist Murders: Pregnant Wyoming Teen Strangled, BF Decapitated After Sexual Rendezvous With Stranger [Video/Pics]
"S*** like this is Crazy...But even worst is the fact that people go online too F***! Isnt anyone still scared of STD's or that Monster!? Plus WTF are u doing f****** random people Preggo? Some people put themselves in f***** up predicaments and…"
19 minutes ago

© 2014   Created by 50 Cent.

Badges  |  Report an Issue  |  Privacy Policy  |  Terms of Service

© 2012   Created by 50 Cent.   Powered by .

Badges  |  Help  |  Terms of Service | Privacy Policy