Ok, so I just woke up a while ago to find out my news feed buzzing the phrase “Facebook buys Instagram for $1 billion”. Very exciting, although that wasn’t coming. It is quite a surprise. Instagram was valued at $100 million just a year ago, and now, Zuckerberg and Co. have decided to pay a handsome $1 billion to actually acquire the company.
At first, if you don’t know what Instagram is, it is the hugely popular mobile app that lets you share photos with your friends and you can apply all sorts of cool filters you’d imagine. But, why did Facebook have to buy Instagram; the question is, what does a social networking site have to do with a photo sharing mobile app.
Well, here’s the answer – Facebook has realized that the world is going mobile, and majority of its users access its services via a mobile device, iPhone, Android or Windows Phone. In light of this, one of the major uses of Facebook is photo sharing, and to be at top of their game, Facebook acquires Instagram. Instagram is no kid in the world of social photo sharing, with around 30 million users as of now, it has allowed them to make their pictures look a lot more cooler, based on their interests. Now, with Facebook and Instgram as a single entity, you can expect Facebook to massively improve their photo sharing application, by integrating all the cool things Instagram has to offer. In addition, Facebook’s strategic move will now make it worth a little over $100 billion dollars as they go public in late 2012. Smart move Zuck (Y).
As far as the 1$ billion is concerned, I’d like to point out that, guys, it is indeed the Code era. Code means cash. Interestingly, Kim Sherill just pointed out that 551-day old Instagram is worth $1 billion, where as 116-year old The New York Time & Co. is valued at $967 million. Well, it just proves the fact. Nuff said.
About Ali Gajani
Hi. I am Ali Gajani. I started Mr. Geek in early 2012 as a result of my growing enthusiasm and passion for technology. I love sharing my knowledge and helping out the community by creating useful, engaging and compelling content. If you want to write for Mr. Geek, just PM me on my Facebook profile.